The ongoing discussions around a potential sale of Warner Bros. Discovery (WBD) took another turn this week. WBD’s board remains supportive of a deal with Netflix but has granted Paramount Skydance a limited seven-day period to submit a “best and final” offer.

Paramount described the board’s decision as “unusual” but expressed readiness to engage in good faith negotiations with WBD.

On Tuesday, WBD announced a special shareholder meeting scheduled for March 20, 2026, to vote on the existing agreement with Netflix. This deal would see Netflix acquire WBD’s studio and streaming assets, including HBO and HBO Max.

At the same time, WBD revealed that Netflix has allowed a “limited waiver” enabling discussions with Paramount Skydance for seven days, ending February 23. This window aims to provide clarity for WBD shareholders and give Paramount an opportunity to present its best offer.

Paramount, led by David Ellison, has continued its pursuit of acquiring all of WBD, including the global linear networks business excluded from Netflix’s proposal. Despite repeated rejections from WBD’s board, Paramount insists its $30 per share all-cash offer offers superior value and a clearer, faster path to regulatory approval and closing.

Before Tuesday’s announcement, Paramount enhanced its offer by agreeing to cover a $2.8 billion breakup fee owed to Netflix if WBD terminates their deal. Additionally, Paramount proposed a “ticking fee” that would provide WBD shareholders with extra cash each quarter if the deal does not close by December 31, 2026.

Paramount believes these commitments meet the criteria for WBD’s board to engage with them, while still planning to seek shareholder support against the Netflix deal at the upcoming special meeting.

WBD confirmed receiving Paramount’s revised offer on February 10. However, in Tuesday’s update, WBD noted that a senior Paramount representative indicated willingness to increase the offer to $31 per share but clarified this was not Paramount’s “best and final” proposal. WBD is seeking further clarity and time for Paramount to refine its offer.

David Zaslav, WBD’s president and CEO, stated, “Our focus has been on maximizing value and certainty for WBD shareholders. We have provided Paramount with clear feedback on their offers and opportunities to improve them. We are now engaging to see if they can deliver a binding proposal that offers superior value and certainty through their best and final offer.”

Paramount responded by calling the board’s actions unusual but confirmed its willingness to engage in constructive discussions during the seven-day window. The company noted that this limited negotiation period prevents Paramount from negotiating without a deadline, which would be possible if the board had determined Paramount’s offer could reasonably be superior to Netflix’s.

While Paramount is open to talks, it has not yet indicated whether it will increase its $30 per share offer. Proxy materials sent to WBD shareholders show Netflix’s all-cash offer ranges from $21.23 to $27.75 per share.

Paramount emphasized, “Our offer already provides higher value at $30 per share, all cash, with a faster and more certain path to closing, including the previously announced $0.25 per share quarterly ticking fee.”

Meanwhile, WBD’s board is proceeding with the special shareholder meeting, where Paramount intends to nominate a slate of directors. The board continues to unanimously recommend shareholders approve the Netflix deal and reject Paramount’s tender offer.

Samuel Di Piazza, Jr., Chair of the WBD Board, commented, “We believe the Netflix merger is in the best interests of WBD shareholders due to the significant value it offers, a clear regulatory approval path, and protections against downside risk. This partnership will create a brighter future for the entertainment industry by providing consumers with more choices, protecting jobs, expanding U.S. production capacity, and increasing investments to support long-term industry growth.”

Disclaimer: This article has been auto-generated from a syndicated RSS feed and has not been edited by Vitrina staff. It is provided solely for informational purposes on a non-commercial basis.