Netflix grants WBD 7-day waiver to reopen deal talks with Paramount Skydance
Warner Bros. Discovery He said he would restart deal talks on Tuesday Paramount Skydance Within the scope of 7-day exemption netflix Investigating “deficiencies” in Paramount’s offer to acquire all of WBD.
The legacy media company has a pending transaction with Netflix for its broadcast and studio business. After losing to Netflix in a bidding war, Paramount submitted a hostile tender offer directly to WBD shareholders at $30 per share.
Warner Bros. “Netflix granted WBD a limited waiver under the terms of WBD’s merger agreement with Netflix, permitting WBD to engage in discussions with Paramount Skydance (“PSKY”) (NASDAQ: PSKY) for a seven-day period ending February 23, 2026, to provide clarity for WBD shareholders and to provide PSKY with the ability to make its best and final offer,” Discovery said. he said. in one release.
“During this period, WBD will contact PSKY to discuss unresolved deficiencies and clarify the specific terms of PSKY’s proposed merger agreement,” the statement said.
Paramount leadership has repeatedly said the $30-per-share, all-cash offer was not the “best and final.” Last week, the company sweetened its offer with additional “enhancements” but fell short of increasing per-share value.
Warner Bros. Discovery said Tuesday that a senior Paramount representative informed a WBD board member that it would pay $31 per share if deal talks resumed.
WBD said that after the limited waiver period, Netflix will retain the matching rights provided by the merger agreement.
“Our sole focus throughout the entire process has been to maximize value and certainty for WBD shareholders,” WBD CEO David Zaslav said in a statement. “Every step of the way, we have provided PSKY with clear guidance on the deficiencies in their proposal and opportunities to address them. We are now consulting with PSKY to determine whether they can submit an actionable, binding proposal that provides superior value and certainty to WBD shareholders through their best and final offer.”
WBD also announced Tuesday that a special shareholders meeting will be held on March 20 and said its board continues to unanimously recommend the Netflix deal over Paramount’s offer.
Netflix said in a statement The shareholders meeting date marked “an important milestone for our transaction with WBD.”
“While we are confident that our transaction provides superior value and certainty, we recognize that PSKY’s antics are an ongoing distraction for WBD shareholders and the broader entertainment industry,” Netflix said. “Accordingly, we have granted WBD a narrow seven-day waiver of certain obligations under our merger agreement within which to fully and finally resolve this matter with PSKY.”
