Warner Bros. Discovery’s board is reportedly signaling a willingness to reopen discussions with Paramount Skydance as the company weighs a revised acquisition proposal that competes with its previously announced $83 billion agreement to sell key assets to Netflix.
Paramount Skydance submitted its latest proposal — the ninth since negotiations began last year — on February 10, outlining updated financial terms that include a so-called “ticking fee” worth approximately $650 million per quarter if a transaction is not completed by December 31, 2026.
Bloomberg first reported over the weekend that WBD’s board has grown more receptive to re-engaging.
Previously, the board moved swiftly to dismiss Paramount Skydance’s overtures, describing them as insufficient to disrupt the existing deal with Netflix, which was reached in December and centers on Warner Bros. and HBO Max.
However, the sales process involving the studio and its premium content arm has drawn increased scrutiny. Investors and corporate governance observers are examining the situation closely. They are evaluating whether directors have met their fiduciary responsibilities.
Should Warner Bros. Discovery re-enter talks, the move could strengthen the board’s position. It may help as shareholders prepare potential litigation. Lawsuits often follow transactions of this scale and complexity. The company is expected to address the revised proposal soon. It will also announce the timing of its fourth-quarter 2025 earnings report after the Presidents’ Day holiday.
Investors are also awaiting details regarding a planned special shareholder vote to approve the Netflix transaction. It remains unclear whether renewed engagement with Paramount Skydance would alter that timetable.
Under the terms of the December agreement, Netflix retains the right to match any superior offer prior to closing. That provision could prove pivotal if WBD determines that Paramount Skydance’s latest bid represents a stronger financial or strategic outcome for shareholders.
The competing structures add another layer of complexity. Netflix’s agreement focuses on acquiring Warner Bros. and HBO Max, whereas Paramount Skydance has expressed interest in purchasing the entirety of Warner Bros. Discovery, including its portfolio of cable networks such as CNN, TNT, Discovery, HGTV and Food Network.
Regulatory considerations loom over both paths. As the board navigates mounting legal, regulatory and investor pressure, its next steps will signal whether the December agreement remains the preferred destination or merely the starting point in a broader bidding contest.
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