Highlights
- Warner Bros Discovery sale talks may reopen as the board reviews Paramount’s enhanced $30-per-share offer.
- The revised Paramount bid includes a $2.8B termination fee owed to Netflix if WBD cancels the merger, and a ticking fee of roughly $650M.
- The outcome could reshape Hollywood media consolidation, with shareholders and regulators closely watching the deal.
Warner Bros. Discovery Inc. (WBD) is reportedly considering reopening discussions with Paramount Skydance Corp. over its potential sale, after receiving the latest proposal from Paramount. Bloomberg reported on Feb 16, 2026, that people familiar with the board’s current inclination have said that the WBD board is currently discussing whether Paramount’s proposal is a superior alternative to the Netflix-WBD deal.
On Jan 7, 2026, the WBD Board of Directors (WBD board) unanimously recommended that shareholders reject Paramount’s all-cash $108.4 billion USD takeover bid and reaffirmed its agreement with Netflix. Following this, on Feb 10, Paramount refurbished its offer with a confirmation to pay $2.8B termination fee to Netflix, that WBD would owe to the company if the Netflix-WBD merger gets cancelled.
Paramount also offered a $0.25 per share "ticking fee," to WBD shareholders for every quarter the deal is not closed, starting with Dec 31, 2026. However, the company keeps the base $108.4B WBD takeover offer intact, which includes Warner Bros. streaming, library, and cable networks.
David Ellison, Paramount’s chair and chief executive, said that with the latest decision, the company has enhanced its proposal with “strong and unwavering commitment to delivering the full value WBD shareholders deserve.” Paramount also appointed Rene Augustine as their global public policy senior vice-president, on Feb 17. With Augustine, a former Trump administration attorney, the company has increased its political lobbying power as well.
If the WBD board decides to re-engage with Paramount, it will further escalate a bidding war between Netflix and Paramount. However, according to Bloomberg’s report, the board hasn’t decided how to respond and still has an agreement with Netflix.
Paramount’s Rival Offer to WBD Board and Regulatory Stakes
Paramount’s statement emphasizes financing certainty and antitrust preparedness with the proposed ticking fee, which roughly amounts to $650M in each quarter. The company has also offered to eliminate WBD's potential $1.5B debt-financing cost. “Paramount will fully reimburse WBD's shareholders for the $1.5B fee,” said the company in an official statement, while highlighting that they will not reduce the separate $5.8B reverse termination fee.
With Paramount’s latest offer, a few minor shareholders, including Ancora Holdings Group and Pentwater Capital Management, are urging the board to re-engage with the rival bidder. The renewed reconsideration puts WBD back at the center of an industry-wide scrutiny. Whether the company opts for a full sale to Paramount or remains with the Netflix merger is yet to be seen.
