Netflix and Paramount, two media giants, have been embroiled in a heated dispute over Warner Bros. and its storied catalog, which includes iconic franchises such as "Harry Potter," "Game of Thrones," DC Comics and Superman. Warner opened a seven-day negotiation period with Paramount - until February 23 -. Who has more options?
First modification: 02/19/2026 - 22:16
Warner Bros Discovery (WBD) opened a seven-day negotiation period with Paramount Skydance (PSKY) - until February 23 -, in order to give it the opportunity to improve the offer for its shares and clarify certain terms of a merger. But, she remains "fully committed" to Netflix.
Last December, WBD agreed to sell most of the company, including the Warner Bros. film studio. At the same time, it called a shareholders meeting to be held on March 20 to approve its merger with Netflix, as announced in a statement.
The Board of Directors of WBD continues to unanimously recommend the merger with Netflix and therefore advises its shareholders to reject the offer presented by Paramount.
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However, the WBD Board sent a letter to Paramount explaining that on February 11, a senior representative of that firm verbally informed one of its directors that it would pay $31 per share if talks were started for a possible agreement and that this "was not its final offer."
In the letter, WBD informed Paramount directors that Netflix - with whom they have signed a merger agreement - agreed to grant a pause until February 23 to talk with Paramount and learn about its proposal.
However, in the letter, WBD told PSKY that they remain "fully committed" to Netflix, although they invite them to present a binding proposal that offers greater certainty and protection to Warner shareholders.
Read alsoWarner Bros shareholders will decide between Netflix and Paramount
The value that Netflix brings to Paramount
The president of Warner Bros., Samuel A. Di Piazza, stated that they continue to believe in the merger with Netflix and that it is best for WBD shareholders, due to the "enormous value it brings."
Last December, billionaire tycoon Larry Ellison, co-founder of Oracle and main financier of the offer through Paramount Skydance, offered a personal guarantee of $40.4 billion to acquire Warner, but maintained the offer to acquire the entire company for $30 per share in cash, raising it to $108.4 billion.
Paramount's proposal came after WBD reached a preliminary merger agreement with Netflix earlier this month, valued at $82.7 billion, including debt.
However, WBD's board of directors unanimously rejected PSKY's takeover offer as "inferior" to the merger agreement with Netflix "in numerous key respects."
Although PSKY's offer is higher than Netflix's, Warner's board sees the pact with the streaming platform as less risky, among other reasons because it would have lower execution and regulatory risks.
“Netflix still seems to be in control, but that can change quickly,” says Matt Britzman, senior equity analyst at Hargreaves Lansdown.
“Price will likely be the deciding factor: Warner's concerns about financing and regulatory risk are real, but with a high enough number, they take a backseat.”
Britzman believes Netflix will counter any improved offer from Paramount. "But the key is that these deals were never comparable, and ultimately it could depend on the value that the board of directors and shareholders assign to the network business that Netflix would leave behind," he said.
Paramount improved the hostile bid for WBD on February 10 and offered the conglomerate's shareholders a price of $0.25 per share for each quarter that the purchase has not been completed after December 31, 2026.
"A disaster" for the cinema
The legendary director of “Titanic,” James Cameron, has warned for several months about the impact of Netflix and compared its effect on cinema to a “sinking ship.”
Cameron, in fact, wrote a letter to Republican Mike Lee, who chairs the Senate subcommittee on antitrust, arguing that Netflix's proposed purchase of WBD's studio and streaming assets could lead to massive job losses in Hollywood, fundamentally alter the theatrical landscape in the US, and negatively impact one of America's largest sectors.
“I firmly believe that the proposed sale of Warner Brothers Discovery to Netflix will be disastrous for the film business to which I have dedicated my life,” Cameron wrote to Lee. “Of course, all my films are also screened in video markets, but my greatest passion is cinema.”
Warner Bros rejects Paramount's offer and confirms its preference for Netflix
With EFE and Reuters
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