Netflix(US:NFLX) Business·2026-02-16 03:36Core Viewpoint - Warner Bros Discovery Inc. is considering reopening sale discussions with Paramount Skydance Corp. following an amended offer from Paramount, which addresses several concerns raised by Warner Bros [1][2]. Group 1: Paramount's Offer - Paramount's amended terms include covering a $2.8 billion fee owed to Netflix if Warner Bros. terminates their agreement and offering to backstop Warner Bros.' debt refinancing [2]. - Paramount has proposed to compensate Warner Bros. shareholders if the deal does not close by December 31, indicating confidence in swift regulatory approval [2]. - Paramount's CEO has stated that the current offer is not the final bid, suggesting potential for further increases in the offer [5]. Group 2: Warner Bros. Board Considerations - The Warner Bros. board is evaluating whether Paramount's offer could lead to a superior deal, which may trigger a bidding war with Netflix [3]. - Despite concerns about Paramount's offer, this is the first time the board has considered it could prompt Netflix to increase its bid [4]. - Shareholder pressure is mounting for the board to engage with Paramount, as some shareholders believe it could lead to a better outcome [4][10]. Group 3: Competitive Landscape - Warner Bros. has a binding agreement with Netflix for a sale at $27.75 per share, while Paramount is appealing directly to Warner Bros. shareholders with a $30-a-share tender offer [5][6]. - Both Paramount and Netflix are cautious about spending too much, with Netflix shares having declined over 40% from their June peak [7]. - Paramount initiated the auction for Warner Bros. with an unsolicited offer last year and has been actively courting regulators and shareholders [9].