Warner Bros. Discovery is considering reopening talks with Paramount after the streaming giant made an improved offer last week, two people familiar with the matter said. This comes after the company agreed to sell its streaming and studios business to Netflix for $83 billion in December. However, a new bid from Paramount could lead to a superior deal, according to Warner Bros. Discovery’s contract.
Paramount addressed some of the concerns raised by Warner Bros. Discovery by agreeing to pay a fee owed to Netflix if the deal is terminated and backing debt costs. The company also offered to pay Warner Bros. Discovery’s shareholders around $650 million in cash starting in 2027 for each quarter the deal does not close.
The board members are now discussing whether Paramount’s bid could lead to a better offer, with some shareholders having expressed concerns about the Netflix deal. These concerns include the value of the cable business that would be carved out and regulatory approval.
If Warner Bros. Discovery decides to reopen talks with Paramount, it must notify Netflix according to their contract terms. The company has until Feb. 25 to respond to Paramount’s latest proposal. Shares of both companies have seen significant fluctuations since the start of the year, with Warner Bros. Discovery falling by 1.8% and Netflix by 15%.
Source: https://www.nytimes.com/2026/02/15/business/netflix-warner-bros-discovery-paramount.html