WBD Opens Door to Paramount Skydance Bid After Improved Offer

Warner Bros. Discovery's board of directors has opened the door to negotiations with Paramount Skydance after reviewing an improved takeover bid from the company led by David Ellison.

The revised offer raises the cash price to $31 per WBD share, up $1 from the previous proposal. It also includes a $0.25 quarterly delay fee starting September 30, 2026, a $7 billion regulatory break-up fee that Paramount Skydance would cover if regulators block the deal, and Paramount's commitment to pay the $2.8 billion termination fee WBD would owe Netflix if it backs out of the current merger agreement.

WBD stated that the bid warrants further evaluation to see if it could surpass the terms of the Netflix deal, but emphasized it does not yet deem it superior or commit to pursuing it. The board continues to recommend the Netflix merger, which remains in effect.

Discussions with Paramount Skydance will proceed to assess whether a formal superior offer can be reached. If so, Netflix would have four business days to review and potentially submit a counteroffer. WBD cautioned there is no assurance the Paramount Skydance proposal will ultimately prove better or that talks will succeed.

Paramount welcomed the development and expressed willingness to negotiate constructively.