Warner Bros. Discovery supports Netflix deal while reopening talks with Paramount

Warner Bros. Discovery (WBD) has reaffirmed its support for its merger agreement with Netflix, even as it temporarily reopens discussions with Paramount Global over a potential competing bid.

The media giant said it wants to hear Paramount’s “best and final proposal” and has opened a short window for renewed negotiations. At the same time, WBD is urging shareholders to reject Paramount’s current hostile offer and instead approve the Netflix deal.

WBD previously agreed to sell most of its studio and streaming assets including the Warner Bros. film studio and HBO to Netflix. Its cable networks, such as CNN, are expected to be spun off into a separate entity. The Netflix transaction values the studio and streaming assets at $27.75 per share.

Paramount, led by CEO David Ellison, responded by bypassing WBD’s board and offering shareholders $30 per share for the entire company, including CNN. According to WBD, Paramount recently signaled it could raise its bid to $31 per share if formal talks resumed, though it left open the possibility of going higher.

Despite having a signed merger agreement with Netflix, WBD has secured a limited seven-day waiver from the streaming giant to hold discussions with Paramount.

In a letter to Paramount’s board, WBD requested a definitive offer, effectively asking the company to present its highest binding bid.

WBD CEO David Zaslav said the company’s priority remains maximizing value and certainty for shareholders. He stated that Paramount has been repeatedly informed of weaknesses in its proposals and must now demonstrate whether it can present a superior and actionable offer.

Netflix, for its part, has sharply criticized Paramount’s bid, describing it as financially risky and raising concerns about its funding structure. The streaming company also pointed to potential regulatory scrutiny, citing foreign investment backing Paramount’s proposal, including capital linked to Middle Eastern royal families.

WBD emphasized that its board has not concluded that Paramount’s offer is superior to the Netflix merger. However, by reopening talks, the company is signaling it is willing to evaluate whether a higher bid could emerge.

The high-stakes battle for control of Warner Bros. Discovery continues to unfold, with shareholders set to vote on the Netflix transaction at a special meeting scheduled for March 20.