Warner Bros. Rejects Paramount Bid, Backs Netflix Merger

Warner Bros. Discovery has formally rejected a revised hostile takeover bid from Paramount and Skydance, stating its commitment to a merger with Netflix.

In a statement released on Tuesday, Warner Bros. Discovery noted that it received a seven-day waiver from Netflix, allowing discussions with Paramount and Skydance until February 23, 2026.

The Warner Bros. board unanimously recommended that shareholders vote in favor of the Netflix merger, citing concerns over valuation certainty and regulatory clarity as reasons for rejecting the Paramount and Skydance offer. Warner Bros. senior representatives indicated that discussions with Paramount and Skydance would continue to clarify alternative value propositions, although no assurance of a definitive rival transaction is expected.

The company plans to separate its streaming studio business from its global linear network operations ahead of the shareholder record date of February 4, 2026, with a vote scheduled for March 20. Warner Bros. has acknowledged the high financial risks associated with the Paramount and Skydance proposal.