Warner Bros. Discovery Considers Paramount Skydance Offer

Paramount sweetens its bid to acquire the media company after Netflix's initial offer.

Published on Feb. 16, 2026

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Warner Bros. Discovery is reportedly reconsidering an offer from Paramount Skydance to acquire the company, after Paramount sweetened its bid. This comes after Warner Bros. Discovery previously agreed to be acquired by Netflix, but Paramount launched a hostile takeover attempt. Paramount has now agreed to cover the $2.8 billion termination fee that Warner Bros. Discovery would owe Netflix, as well as back the company's debt costs.

Why it matters

This potential acquisition represents a high-stakes battle for control of major media assets, as Paramount and Netflix compete to expand their content libraries and streaming platforms. The outcome could have significant implications for the future of the entertainment industry.

The details

In October, Warner Bros. Discovery said it was open to offers, and in December, it agreed to be acquired by Netflix after a bidding war. However, Paramount then launched a hostile takeover bid, which the Warner Bros. Discovery board initially rejected. Paramount has now sweetened its offer, agreeing to pay the $2.8 billion termination fee that Warner Bros. Discovery would owe Netflix, as well as back the company's debt costs. Paramount has also offered a "ticking fee" of 25 cents per share for each quarter the deal is delayed, starting in 2027, which could total around $650 million per quarter.

  • In October 2025, Warner Bros. Discovery said it was open to offers.
  • In December 2025, Warner Bros. Discovery agreed to be acquired by Netflix.
  • In January 2026, Paramount launched a hostile takeover bid for Warner Bros. Discovery.
  • On February 10, 2026, Paramount sweetened its offer for Warner Bros. Discovery.

The players

Warner Bros. Discovery

A major media and entertainment company formed by the merger of Warner Bros. and Discovery, Inc.

Paramount Skydance

A media company that owns the Paramount Pictures film studio and Skydance Media production company.

Netflix

A leading global streaming entertainment service provider.

Larry Ellison

The co-founder and chief technology officer of Oracle Corporation, who is backing Paramount's bid for Warner Bros. Discovery with $40 billion in equity.

Rene Augustine

Paramount's newly appointed senior vice president of global public policy, who previously worked as a lawyer in the Trump administration.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

Warner Bros. Discovery has until February 25, 2026 to respond to Paramount's sweetened offer.

The takeaway

This acquisition battle highlights the ongoing consolidation and competition in the media and entertainment industry, as major players like Paramount, Netflix, and Warner Bros. Discovery vie for control of valuable content and distribution platforms.