Warner Bros Opens Week-Long Talks with Paramount Amid Bidding War with Netflix

Warner Bros Discovery (WBD) has initiated a seven-day negotiation period with Paramount to discuss its $108 billion acquisition offer, competing against Netflix's $82.7 billion bid. This negotiation window, granted by a limited waiver from Netflix, runs through February 23, 2026, during which Warner aims to clarify key terms of Paramount's proposal. Paramount's offer includes acquiring full control of Warner Bros, including television channels such as CNN, unlike Netflix's focus on Warner Bros and HBO streaming services only.

Paramount promised quarterly payments of $0.25 per share to Warner shareholders after December 31, 2026, until deal closure, and coverage of $2.8 billion termination fees Warner owes Netflix if the deal does not proceed. Warner has consistently expressed a preference for Netflix's offer, although Paramount’s offer could reach up to $31 per share compared to Netflix's $27.75 per share. Regulatory concerns have also been raised about the potential Warner-Paramount merger, with Netflix accusing Paramount of misleading shareholders regarding antitrust approval prospects.

A special shareholder meeting to decide Warner’s acquisition route is scheduled for March 20, 2026. Warner's share price recently rose 2.23% to $28.62 amid these developments, while Paramount's stock increased 6.06%. Paramount initially initiated interest in acquiring Warner but has faced repeated rejections. Netflix has vowed to match any improved offer from Paramount, keeping the bidding war intense in the entertainment sector.

These ongoing negotiations highlight a fierce battle for control of one of the world’s largest entertainment groups, reflecting both strategic content significance and complex shareholder considerations.