Warner Bros Discovery has rejected a revised hostile takeover bid from Paramount Skydance, but signalled it remains open to considering a final improved offer.
In a statement released on Tuesday, Warner Bros Discovery said it had received a seven-day waiver from Netflix, allowing it to hold talks with Paramount Skydance until February 23, 2026.
The waiver permits Warner Bros to address unresolved issues in Paramount Skydance’s amended proposal and provides the rival bidder an opportunity to submit a binding final offer.
Netflix retains matching rights under the existing merger agreement.
Despite opening the door to discussions, the Warner Bros board stressed that it remains fully committed to the Netflix transaction. The board unanimously recommends that shareholders vote in favour of the Netflix merger and reject the Paramount Skydance offer, citing value certainty, regulatory clarity, and downside protection for investors.
According to Warner Bros, a senior representative of Paramount Skydance separately informed a board member that the group would be willing to pay $31 per share if discussions were authorised.
“Throughout the entire process, our sole focus has been on maximizing value and certainty for WBD shareholders,” said David Zaslav, President and Chief Executive Officer of Warner Bros. Discovery.
“Every step of the way, we have provided PSKY with clear direction on the deficiencies in their offers and opportunities to address them. We are engaging with PSKY now to determine whether they can deliver an actionable, binding proposal that provides superior value and certainty for WBD shareholders through their best and final offer.”
Board Chair Samuel Di Piazza Jr. added that the Netflix merger remains the preferred option, highlighting its strong regulatory path, limited financing risk, and strategic benefits for the long-term growth of the business. He said the transaction would support greater investment in content, protect jobs, and expand production capacity across the entertainment industry.
