Warner Bros. announces reopening of buyout talks

Gives Paramount one week to beat rival Netflix, schedules special shareholders meeting on matter

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AFP February 18, 2026 2 min read

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NEW YORK:

Warner Bros. Discovery said Tuesday it has reopened talks with Paramount Skydance on its buyout offer, giving the company a week to beat a rival Netflix bid.

These discussions, scheduled to end February 23, are designed to give Paramount Skydance a chance to make its "best and final offer," Warner Bros. Discovery said in a statement that stressed it prefers the Netflix merger and has scheduled a special shareholders meeting to vote on it on March 20.

Television and film titan Warner Bros. Discovery, which owns CNN, announced in late October that it was open to acquisition offers. Its board subsequently accepted a bid from Netflix to buy only its streaming and studio business.

Paramount Skydance is seeking to buy all of Warner Bros. Discovery for $108 billion. Netflix is offering $83 billion for its more limited merger.

The Netflix offer does not include Warner Bros. Discovery's television properties such as CNN and Discovery. Those would belong to a newly created, publicly traded company called Discovery Global if the deal goes through.

Paramount Skydance accuses the Warner Bros. Discovery board of failing to present shareholders with the details needed to properly compare its offer to the Netflix bid.

During the talks that opened Tuesday, Warner Bros. Discovery said it will discuss "deficiencies that remain unresolved and clarify certain terms of PSKY's proposed merger agreement."

Paramount CEO David Ellison insists that his offer, largely financed by his father, multi-billionaire Larry Ellison, will not face the regulatory scrutiny in the US and Europe that could derail or seriously delay the Netflix deal.

With that in mind, Paramount has offered to pay Warner Bros. Discovery shareholders a "ticking fee" of 25 cents per share — roughly $650 million per quarter — for every quarter the deal is not closed beyond December 31, 2026.

Paramount has also pledged to cover the $2.8 billion termination fee owed if Warner Bros. Discovery walks away from the Netflix agreement.

Paramount's offer is fully financed by $43.6 billion in equity commitments from Larry Ellison and RedBird Capital Partners, alongside $54 billion in debt financing from Bank of America, Citigroup, and Apollo Global Management.

Critics say Netflix's acquisition of Warner Bros. would give the streaming giant too much control over Hollywood production, which is already under pressure from the streaming revolution and Netflix's lack of commitment to theatrical releases for its movies.

A successful buyout by Paramount would see a major media property that includes CNN fall under the control of the Ellison family, which has close ties to the Trump administration.