Warner Bros rejects revised Paramount bid, sets deadline for improved offer amid Netflix deal

Summary

Warner Bros. Discovery has declined a revised takeover proposal from a Paramount-Skydance group but granted the bidder one week to submit a higher “best and final” offer. The company reiterated its commitment to a previously announced transaction with Netflix, highlighting intensifying consolidation pressures across the global media industry.

NEW YORK — Feb. 17, 2026 — Warner Bros. Discovery has rejected an updated takeover approach from Paramount-backed investors, saying the proposal does not currently outweigh the strategic and financial merits of its planned transaction with Netflix.

In a letter to the bidder, the company confirmed that Paramount has seven days to present an improved offer, after which the board will reassess its position.

Paramount signals willingness to raise price

Paramount indicated it could increase its proposal to roughly $31 per share, above an earlier $30 offer. However, Warner’s board said the revised terms still fall short of the Netflix deal’s perceived value and certainty.

Under the merger agreement, Netflix retains matching rights should a superior proposal emerge.

Strategic value of Warner’s assets

The bidding interest underscores the importance of Warner’s portfolio, which includes major streaming and studio operations and globally recognized franchises.

Paramount’s proposal reportedly values the broader company at about $108 billion, while the Netflix transaction focuses on acquiring Warner’s studio and streaming businesses for roughly $82.7 billion.

Markets reacted modestly, with shares of the companies involved moving slightly higher in early trading.

Shareholder vote timeline

Warner Bros. Discovery plans to proceed with a March 20 shareholder vote on the Netflix transaction.
The deal would follow a planned spin-off of certain cable networks into a separate listed entity, part of a broader effort to streamline operations and sharpen its streaming focus.

Activist pressure and financing scrutiny

Activist investors have urged the board to engage more deeply with alternative proposals, while Paramount’s bid continues to face questions around financing structure and certainty.

Warner said unresolved issues include funding contingencies and potential break-fees if deal terms change.

What comes next

If Paramount submits a materially higher and fully financed proposal, the board could reconsider. For now, the Netflix agreement remains Warner’s preferred path.

Why this matters

The outcome of this contest could reshape the competitive balance in global entertainment, determining whether Warner deepens its streaming alignment with Netflix or becomes part of a broader consolidation wave. The decision will also signal how boards weigh valuation against execution certainty in an industry undergoing rapid structural change.

FAQs

Q1: Why did Warner reject the latest bid?

The board said it does not currently consider the proposal superior to the Netflix transaction.

Q2: What is the deadline for a new offer?

Paramount has seven days to submit a revised “best and final” proposal.

Q3: When is the shareholder vote?

March 20.

Q4: What are the main concerns about the Paramount proposal?

Financing certainty, valuation, and potential transaction costs.

Q5: Why is this takeover battle significant?

It reflects accelerating consolidation as media companies seek scale in streaming and content production.