Warner Bros Discovery 2026: Paramount Gets New Chance to Beat Netflix in $83B Takeover Battle

What is the Warner Bros Discovery Takeover Battle?

The media industry is witnessing one of the most dramatic corporate takeover battles in recent history as Warner Bros Discovery (WBD) navigates competing bids from streaming giant Netflix and media conglomer Paramount Skydance. In a stunning development on February 17, 2026, WBD has reopened negotiations with Paramount, giving the company until February 23 to submit a new and improved offer that could potentially derail Netflix's planned $83 billion acquisition of WBD's streaming and studio assets. This high-stakes corporate drama represents a pivotal moment in the streaming media consolidation that has reshaped Hollywood over the past decade.

Background: The Netflix Deal vs. Paramount's Hostile Bid

Warner Bros Discovery initially agreed to merge its streaming and studio operations with Netflix in December 2025 in a landmark $83 billion deal that would create a media powerhouse controlling HBO, DC Comics, Warner Bros. films, and Discovery's reality programming. However, Paramount Skydance launched a hostile takeover bid for the entire WBD company, offering $108.4 billion ($30 per share) compared to Netflix's $27.75 per share offer for just the streaming and studio divisions.

WBD CEO David Zaslav and Chairman Samuel DiPiazza have maintained that the Netflix deal offers superior value and certainty, but mounting pressure from shareholders and Paramount's persistent advances have forced the board to reconsider. 'We welcome the opportunity to engage with you and promptly determine whether PSKY can submit an executable, binding proposal that offers superior value,' Zaslav and DiPiazza wrote in a letter to Paramount's board.

Key Financial Details of the Competing Offers

• Netflix Deal: $83 billion ($27.75 per share) for streaming and studio assets only
• Paramount Bid: $108.4 billion ($30 per share) for entire WBD company
• Deadline: Paramount has until February 23, 2026 to submit new offer
• Shareholder Vote: Scheduled for March 20 on Netflix merger

Why Warner Bros Discovery Reopened Talks with Paramount

Several factors have contributed to WBD's decision to give Paramount another chance. First, Paramount has increased its bid twice since December, addressing specific concerns raised by the WBD board. Second, Netflix granted WBD a 7-day waiver allowing negotiations with Paramount, demonstrating confidence in their own offer's superiority. Third, shareholder pressure has mounted as Paramount's full-company offer represents a 8% premium over Netflix's partial acquisition.

The strategic implications are significant. If Paramount succeeds, it would create a media conglomerate with combined assets including Paramount Pictures, CBS, Showtime, HBO, Warner Bros. Studios, and Discovery's extensive reality TV library. This would fundamentally alter the entertainment industry landscape and create a formidable competitor to Netflix's streaming dominance.

Netflix's Response to the Renewed Competition

Netflix has responded firmly to the renewed Paramount threat. In a statement, the streaming giant said: 'Throughout the robust and highly competitive strategic evaluation process, Netflix has consistently taken a constructive, responsive approach toward WBD, in stark contrast to Paramount Skydance.' Netflix maintains that their transaction offers superior value and certainty, calling Paramount's approach 'distracting' for WBD shareholders and the entertainment industry.

Critical Timeline and Next Steps

The coming weeks will determine the fate of one of Hollywood's most valuable media companies. Here's what to watch:

1. February 23, 2026: Paramount's deadline to submit a new binding offer
2. March 20, 2026: WBD shareholder vote on Netflix merger
3. Potential Outcomes: If Paramount submits a superior offer, Netflix has matching rights
4. Regulatory Hurdles: Both deals face significant antitrust scrutiny

Industry analysts note that Paramount's financing remains a concern, with much of their funding coming from Middle Eastern royal families, raising potential national security questions. Meanwhile, Netflix's all-cash offer provides greater certainty, though it only covers part of WBD's business, leaving the television networks to operate independently.

Impact on the Streaming Media Landscape

The outcome of this takeover battle will have far-reaching consequences for the entertainment industry. A Netflix-WBD merger would create the world's dominant streaming platform with unparalleled content libraries and production capabilities. A Paramount-WBD combination would establish a traditional media powerhouse with broadcast, cable, streaming, and studio assets that could challenge both Netflix and Disney.

For consumers, the consolidation could mean higher subscription prices as competition decreases, but also potentially more integrated content experiences. For Hollywood creatives, the merger could reshape production deals and intellectual property management across major franchises. The media merger trends of recent years have accelerated, with this battle representing a potential tipping point in industry consolidation.

Frequently Asked Questions (FAQ)

What is the current status of the Warner Bros Discovery takeover?

Warner Bros Discovery has reopened negotiations with Paramount Skydance until February 23, 2026, while maintaining its existing merger agreement with Netflix. A shareholder vote on the Netflix deal is scheduled for March 20.

How much is Netflix offering for Warner Bros Discovery?

Netflix is offering $83 billion ($27.75 per share) for WBD's streaming and studio assets only. The remaining television networks would be spun off into a separate company called Discovery Global.

What is Paramount's bid for Warner Bros Discovery?

Paramount has offered $108.4 billion ($30 per share) for the entire Warner Bros Discovery company, representing an 8% premium over Netflix's partial acquisition offer.

When will the final decision be made?

The critical dates are February 23 (Paramount's deadline) and March 20 (shareholder vote on Netflix merger). If Paramount submits a superior offer, Netflix has matching rights and the battle could extend further.

What are the regulatory concerns?

Both deals face significant antitrust scrutiny due to market concentration concerns in streaming and content production. Paramount's Middle Eastern financing also raises potential national security questions.

Sources

This article was compiled from multiple sources including CNN Business, Ars Technica, The New York Times, and Warner Bros Discovery corporate communications. Financial details were verified through regulatory filings and corporate announcements.