Netflix has granted Warner Bros. Discovery a limited waiver to reopen deal talks with Paramount Skydance for seven days, focusing on resolving deficiencies in Paramount's acquisition offer.
Waiver Terms and Timeline
- The waiver, issued under WBD's merger agreement with Netflix, permits discussions until February 23, 2026.
- It aims to provide clarity for WBD shareholders and allow Paramount to submit a best and final offer.
- After the period, Netflix retains matching rights for its pending acquisition of WBD's streaming and studio assets.
Paramount's Offer Details
- Paramount initiated a hostile tender offer at $30 per share after losing a bidding war to Netflix.
- Last week, it added contractual enhancements but did not increase the per-share price.
- A senior Paramount representative indicated a potential rise to $31 per share if negotiations restart.
Executive Perspectives
- WBD CEO David Zaslav emphasized the focus on maximizing shareholder value by addressing unresolved deficiencies in Paramount's proposals.
- Netflix co-CEO Ted Sarandos stated the waiver counters Paramount's confusing tactics, saying, "Let them make a move," while declining to speculate on raising Netflix's $27.75 per share offer.
Bidding War Context
- WBD has a pending merger agreement with Netflix for its streaming and studio divisions.
- The current talks seek a binding proposal that ensures superior value and certainty for WBD shareholders amid competing offers.