Warner Bros. Discovery is weighing renewed sale talks with Paramount Skydance after a revised bid, intensifying a high-stakes battle with Netflix for control of key Hollywood franchises.
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| Boardroom deliberations at Warner Bros. signal uncertainty over its Netflix agreement as Paramount Skydance pushes an enhanced $108 billion offer. Image: CH |
NEW YORK CITY, USA — February 16, 2026
Warner Bros. Discovery is weighing whether to reopen sale negotiations with rival studio Paramount Skydance, according to a Bloomberg News report, signaling a potential shift in one of Hollywood’s most consequential takeover battles.
The reported deliberations come as the media giant faces mounting pressure over its existing agreement with Netflix. While no decision has been announced, board members are said to be assessing whether Paramount’s revised proposal could constitute a superior deal — both financially and strategically.
Paramount has not raised its $30-per-share offer, which values the transaction at approximately $108.4 billion including debt. Instead, it has enhanced the structure of its bid.
The company is offering shareholders a 25-cent-per-share quarterly “ticking fee” beginning in 2027 if the deal does not close after this year — an incentive estimated at roughly $650 million annually until completion. Additionally, Paramount has agreed to cover the $2.8 billion breakup fee Warner Bros. would owe Netflix should it exit their current agreement.
By absorbing that penalty, Paramount lowers the financial hurdle for Warner Bros. to reconsider its options. The move suggests confidence in the long-term strategic logic of the merger, even without increasing the nominal offer price.
Both suitors are pursuing Warner Bros. for its expansive content portfolio and global reach. The company controls major entertainment properties including Game of Thrones, the Harry Potter franchise, and DC Comics superheroes such as Batman and Superman.
For Netflix, acquiring Warner Bros. would deepen its production pipeline and strengthen its intellectual property library at a time when streaming subscriber growth has moderated. Owning globally recognized franchises could help reduce reliance on licensed content and bolster long-term competitiveness.
Paramount, by contrast, appears focused on consolidation within traditional studio and cable operations, potentially combining Warner Bros.’ assets with its own broadcast and cable networks. Such a merger could create a diversified media powerhouse spanning theatrical releases, streaming, news and sports programming.
The board’s calculus has been complicated by activist investor Ancora Holdings, which has built a nearly $200 million stake in Warner Bros. Ancora has publicly opposed the Netflix agreement, arguing the board did not sufficiently engage with Paramount over its rival offer.
Activist involvement raises fiduciary stakes. Directors must demonstrate that they are maximizing shareholder value while balancing regulatory risks and long-term strategic considerations.
Any transaction of this magnitude would likely face intense scrutiny from U.S. antitrust authorities, particularly given concerns about consolidation in media and entertainment. Paramount’s ticking fee structure may be designed to reassure investors wary of extended regulatory delays.
At the same time, reopening talks could prolong uncertainty, potentially affecting employee morale, creative partnerships and operational focus at Warner Bros.
The situation reflects broader structural pressures in the global media industry. As streaming competition intensifies and traditional television revenues decline, scale and intellectual property have become paramount assets.
Whether Warner Bros. ultimately stays the course with Netflix or pivots toward Paramount could reshape the competitive landscape in Hollywood and beyond. For now, the board faces a defining choice: prioritize deal certainty or reopen negotiations in pursuit of potentially greater long-term value.