Warner Bros Discovery has emerged as the focal point of a high‑stakes corporate drama, as the media giant weighs a massive studio‑and‑streaming sale to Netflix against an all‑company takeover proposal from Paramount Skydance. With Netflix granting a rare waiver that allows Warner Bros to reopen talks with Paramount, the coming days could determine the future shape of Hollywood’s streaming and traditional media landscape.
Netflix’s 72 Billion Dollar Deal for Studio and Streaming Assets
At the heart of Warner Bros Discovery’s current strategy is a proposed deal under which Netflix would acquire its studio and streaming business. In December, Netflix agreed to buy these assets for 72 billion dollars, and once debt is factored in, the total value of the transaction rises to approximately 83 billion dollars. The transaction is focused on Warner Bros’ core content engine, including its major film and television production operations and associated streaming platforms, while leaving other parts of the group outside the scope of the deal.
Warner Bros’ management and board have formally backed the Netflix agreement, positioning it as the main pathway to unlock value for shareholders and streamline the company’s structure. Shareholders are expected to vote on the Netflix transaction in the spring, with a key meeting date publicly set for 20 March 2026, making that gathering a crucial moment in determining whether the deal moves forward.
Paramount Skydance’s Competing Vision: Buying All of Warner Bros Discovery
Paramount Skydance, however, is pushing an alternative, more sweeping vision: it wants to acquire all of Warner Bros Discovery rather than just the studio and streaming arm. Its proposal explicitly includes high‑profile news and cable brands such as CNN and Discovery‑branded channels, which would bring under one roof an extensive mix of entertainment, factual programming and rolling news.
In December, Paramount Skydance put forward an all‑cash offer worth 77.9 billion dollars for Warner Bros Discovery. This bid is structured as a full‑company acquisition and is framed as a way to create a large, vertically integrated media group with powerful positions in both linear television and streaming. Warner Bros is now weighing this offer alongside the Netflix deal, assessing relative value, strategic fit and execution risk before committing to a final path.
Netflix Grants Waiver for New Talks With Paramount Skydance
The competitive tension between the two suitors intensified when Netflix agreed to temporarily loosen restrictions in its own merger agreement. Netflix has given Warner Bros Discovery a seven‑day permit, allowing it to resume discussions with Paramount Skydance over contentious points in the earlier takeover proposals. Under the terms of this waiver, Warner Bros has until 23 February to explore whether a mutually acceptable agreement with Paramount Skydance can be reached.
This move reflects the formal process in large M&A deals: although Warner Bros management supports the Netflix transaction, the board has a duty to consider any credible alternative that could deliver superior value. By granting the waiver, Netflix has acknowledged that Warner Bros may need limited flexibility to test Paramount Skydance’s interest, even as the companies continue to work toward a shareholder vote on their own deal.
A Defining Moment for Hollywood’s Future
The rivalry between Netflix and Paramount Skydance over Warner Bros Discovery highlights a broader turning point for the entertainment industry. A successful Netflix acquisition of the studio and streaming segments would further cement the platform’s role not only as a leading distributor of content, but also as the owner of one of the world’s most significant production powerhouses and libraries.
By contrast, a full‑scale Paramount Skydance takeover could accelerate consolidation among more traditional media groups, combining major cable brands, news channels and studio assets under a single corporate structure. For Warner Bros Discovery’s shareholders, employees and creative partners, the coming weeks will be decisive, as negotiations and the planned spring vote converge to determine which strategic vision will define the company’s next chapter.
