Warner Bros. Discovery has resumed acquisition talks with Paramount Skydance, granting the consortium one week to submit a final offer for the media conglomerate. This development pits a full buyout bid against a preferred, but partial, merger agreement with Netflix, setting the stage for a pivotal shareholder vote.
The negotiations, scheduled to conclude on February 23, aim to resolve outstanding issues and clarify terms of Paramount Skydance’s proposed $108 billion all-cash offer. Warner Bros. Discovery (WBD) confirmed the discussions in a statement reiterating its preference for a separate transaction with Netflix. That deal, valued at approximately $83 billion, would see Netflix acquire WBD’s streaming and film studio units. A special shareholder meeting to vote on the Netflix merger is set for March 20.
WBD, the owner of CNN, HBO, and Discovery, first signaled its openness to strategic alternatives in late October. Its board subsequently accepted the Netflix offer for the streaming and studio assets, a structure that would leave WBD’s traditional television networks—including CNN and Discovery Channel—in a newly formed, publicly traded entity named Global Networks.
Paramount Skydance, which has amended its offer twice since November, alleges that the WBD board has not provided shareholders with sufficient comparative details between its comprehensive buyout and Netflix’s asset-specific merger. In response, WBD stated the renewed talks will focus on addressing the “deficiencies that remain unresolved” in the Paramount Skydance proposal.
The conflict centers on valuation and strategic scope. Paramount Skydance’s bid seeks complete control of WBD, while the Netflix deal is a merger of equals focused on streaming. The ultimate decision will rest with WBD shareholders, who must weigh a higher, all-cash bid against the potential long-term strategic rationale and shareholder stake in the proposed Netflix entity and the separate Global Networks company.
The outcome will significantly reshape the competitive landscape for global media and streaming, determining the future ownership of iconic brands like CNN and the consolidated scale of a major Hollywood studio.
