Warner Bros. Board Considers Reopening Talks with Paramount — Is The Netflix Deal in Danger?

The battle between Paramount and Netflix over Warner Bros. isn’t over yet — not by a long shot.

A recent Bloomberg report indicates that Warner Bros. Discovery’s board is seriously considering new sale talks with Paramount Skydance. This comes after receiving a revised offer that’s competitive with, and potentially better than, their current deal with Netflix.

Although a final decision hasn’t been made yet, the fact that Paramount is offering a new bid suggests the competition to acquire the company might be starting up again.

Paramount Amended Offer Forces Warner Bros. To Reconsider

According to Bloomberg, Paramount has revised its offer to address concerns Warner Bros. executives previously expressed.

Sources say Paramount has revised its offer to buy Warner, offering more financial guarantees to make the deal more appealing and less of a risk for Warner’s owners.

Among the key revisions:

Paramount would cover the $2.8 billion breakup fee Warner Bros. would owe Netflix if it exits the existing agreement
The company is offering to backstop Warner’s debt refinancing
Paramount is also proposing shareholder compensation if the deal fails to close by year’s end

People familiar with the board’s discussions say the recent changes are substantial enough that Warner Bros. Discovery is now considering if Paramount’s approach might lead to a better outcome overall.

Despite reports, Bloomberg points out that Warner Bros. still has a deal in place with Netflix, and nothing has been officially changed yet.

Netflix Deal Still Binding — But Pressure Is Mounting

Warner Bros. had already reached an agreement to sell its studios and the HBO Max streaming service to Netflix for $27.75 a share.

That agreement remains in place.

Despite ongoing legal challenges, Paramount is still trying to win over its shareholders with a direct offer to buy their shares for $30 each. At the same time, they’re also working to convince regulators to approve the deal.

According to Bloomberg, investors are pushing Paramount to reconsider its current structure, arguing that a different approach might be better for the company’s future. This has led Paramount to start discussing the possibility internally.

Investment firms focused on shareholder activism, like Pentwater Capital Management and Ancora Holdings Group, have expressed support for working with Paramount. However, according to Bloomberg, only a limited number of shares have actually been offered so far.

Bidding War 2.0 Could Be On The Table

If Warner Bros. decides to work with Paramount again, their agreement includes a clause that automatically starts a bidding war.

According to Bloomberg, Warner must first inform Netflix of any offers it receives, as Netflix has the option to either match the offer or make a better one.

People involved in the talks indicate that both Paramount and Netflix are willing to offer more money if needed.

Paramount’s CEO, David Ellison, has suggested their current bid isn’t their last, and Netflix has hinted they’re open to offering better terms if they face competition.

In short: neither side appears ready to walk away.

Investor Reaction Signals Deal Fatigue

The prolonged acquisition fight has already rattled markets.

According to Bloomberg, Netflix stock has dropped over 40% since its high in June. This decline shows that investors are worried about the expense and challenges of taking over Warner Bros.’ large studio operations and streaming services.

Despite the price remaining the same for now, some large investors see Paramount’s new plan as a sign of increasing financial ingenuity.

Chris Marangi of Gabelli Funds framed the shift as: “Ways to be creative about structuring a deal.”

Marangi also mentioned that investors are carefully monitoring Paramount to see if they will take additional steps to acquire the property.

“Like the Warner Bros. board, I want to see a sweetened offer,” he said.

Paramount Started The Fight — And Isn’t Letting Go

Bloomberg’s report reminds us that Paramount started the fight for control by making an unexpected offer last year.

The company increased its offer several times, but Netflix ultimately secured the deal.

Paramount’s leaders have continued to persuade shareholders and regulators that merging with Warner Bros. Discovery is the best path forward for the company’s future.

This revised proposal seems to be the company’s strongest push so far to start negotiations again.

What Happens Next

For now, Warner Bros. remains in a holding pattern.

The board is considering if Paramount’s new offer is good enough to start negotiations again, which would likely restart the competition among bidders and could lead to a higher selling price.

If that happens, Netflix would have the opportunity to counter.

If it doesn’t, the current Netflix deal proceeds toward shareholder approval.

The future of Paramount and Warner Bros. remains uncertain, and the outcome is being closely watched by those in the financial, entertainment, and technology industries, as they await to see which company will control a hugely valuable collection of movies and shows.

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2026-02-16 20:58