Paramount Skydance is trying to buy all of Warner Bros. Discovery for $108 billion. file. | Photo credit: Reuters
Warner Bros. Discovery on Tuesday (Feb 17, 2026) said it had resumed talks with Paramount Skydance over its takeover offer, giving the company a week to beat rival Netflix’s bid.
The talks, which will end on February 23, are designed to allow Paramount Skydance to make a “best and final offer”. Warner Bros. Discovery said in a statement that Netflix is prioritizing the merger and has scheduled a special shareholder meeting to vote on it on March 20.
Television and film titan Warner Bros. owns Discovery CNNannounced in late October that it was open to acquisition offers. Its board has approved a bid from Netflix to buy only its streaming and studio business.
Paramount Skydance is trying to buy all of Warner Bros. Discovery for $108 billion. Netflix is offering $83 billion for its more limited merger.
In a statement, Netflix said it was confident its proposed transaction “offers excellent value and certainty” — but noted the “continued distraction for WBD stockholders and the broader entertainment industry caused by PSKY’s antics.” The streaming giant said it had granted Warner a seven-day grace period to “finally resolve this matter”. Warner leadership similarly reiterated its support for the Netflix deal.
Netflix’s offering does not include Warner Bros. Discovery’s television properties, such as CNN and Discovery. If the deal goes through they will be owned by a newly created, publicly traded company called Discovery Global.
Paramount Skydance accused Warner Bros. Discovery’s board of failing to provide shareholders with the details needed to properly match its offer with Netflix’s bid.
During talks that began Tuesday, Warner Bros. Discovery will “discuss outstanding deficiencies and clarify certain terms of PSKY’s proposed merger agreement.”
Paramount CEO David Ellison insisted that his offer, largely funded by his father, multi-billionaire Larry Ellison, would not face regulatory scrutiny in the US and Europe that could derail or seriously delay the Netflix deal.
With that in mind, Paramount has offered to pay Warner Bros. Discovery shareholders a “ticking fee” of 25 cents per share — about $650 million per quarter — if the deal doesn’t close until after Dec. 31, 2026.
Paramount also promised to cover a $2.8 billion termination fee that Warner Bros. Discovery would have to pay if it pulled out of the Netflix deal.
Paramount’s offering will be fully funded by $43.6 billion in equity commitments from Larry Ellison and Redbird Capital Partners, along with $54 billion in debt financing from Bank of America, Citigroup and Apollo Global Management.
Critics say Netflix’s purchase of Warner Bros. would give the streaming giant too much control over Hollywood production, which is already under pressure from the streaming revolution and Netflix’s lack of commitment to theatrical releases for its movies.
To address concerns about theatrical distribution, Netflix has committed to giving Warner Bros. films a 45-day theatrical window if they buy them.
A successful purchase by Paramount would put the Ellison family, which has close ties to the Trump administration, under control of a major media property that includes CNN.
David Ellison’s recent takeover of CBS, part of the Paramount empire, has brought major editorial changes to its news coverage, making it more sympathetic to conservative criticism of the mainstream media in the United States.
Larry Ellison is also a major investor in TikTok’s US operations at the invitation of President Donald Trump.
At a recent Senate hearing, Netflix co-CEO Ted Sarandos faced questions from Republicans about alleged political bias, telling lawmakers that “Netflix has no political agenda.”
Shares of Warner Bros. Discovery rose more than 3 percent in Tuesday trading. Paramount Skydance rose more than 5 percent, while Netflix’s stock edged up slightly.
Published – February 18, 2026 06:06 am IST
