Warner Bros Discovery opens door to Paramount Skydance offer

Group 1 - Warner Bros Discovery is engaging with Paramount Skydance regarding a potential takeover proposal after receiving a limited seven-day waiver from Netflix [2][3] - The waiver allows discussions to clarify outstanding issues and for Paramount Skydance to submit a "best and final" offer by February 23 [3] - Warner Bros Discovery has a binding agreement to sell its studios and streaming assets to Netflix for approximately $27.75 per share in cash, with a special shareholder meeting scheduled for March 20, 2026, to vote on the deal [4] Group 2 - Paramount Skydance has amended its tender offer and indicated a willingness to pay $31 per share, which would not represent its best and final proposal [5] - Warner Bros Discovery noted that the higher price and other matters were not reflected in the latest merger agreement proposed by Paramount Skydance [5] - In a letter to Paramount Skydance, Warner Bros Discovery expressed that the revised offer still contains "many unfavorable terms and conditions" previously rejected by its board [6] Group 3 - Warner Bros Discovery's CEO stated that the company has provided clear direction to Paramount Skydance on deficiencies in their offers and is now engaging to determine if they can deliver a superior, actionable proposal for shareholders [7] - Following the news, shares of Warner Bros Discovery increased by 2.2% to about $28, while Netflix shares decreased by 2% to $75, and Paramount Skydance shares rose nearly 7% to about $11 [7]