Warner Bros Discovery is considering whether to reopen negotiations with Paramount Skydance after receiving an amended proposal from the competing studio, company officials are assessing the offer and next steps.
Members of Warner's board are examining whether the revised proposal from Paramount would represent an improvement over Warner's existing agreement with Netflix. Those involved in the deliberations have not reached a conclusion on how to respond, and the company could ultimately opt to keep the current Netflix arrangement.
Under the changes proposed by Paramount, shareholders would receive additional cash for each quarter that a prospective transaction fails to close after 2026. Paramount has also pledged to assume responsibility for any breakup fee that the HBO parent would owe Netflix if Warner chose to abandon the Netflix deal. Despite these added terms, Paramount did not raise the per-share element of its offer.
The board's review reflects an ongoing assessment of whether the amended package provides superior value or mitigates risks relative to the standing Netflix agreement. At present, there is no corporate decision on re-engaging with Paramount, and Warner may decide to maintain the previously announced deal structure with Netflix.
Context and implications
- Paramount's amendments introduce contingent cash payments tied to delayed closing beyond 2026, which would deliver incremental compensation to shareholders in the event of protracted integration or regulatory timelines.
- By offering to cover any breakup fee Warner would owe Netflix, Paramount has sought to address a direct financial barrier to abandoning the existing Netflix arrangement, while keeping its per-share valuation unchanged.
- The Warner board is actively weighing these revised terms against the standing Netflix deal, but has not yet committed to a course of action.
Given the current stage of deliberation, the company's final position remains unresolved. Stakeholders will be watching for any formal response or decision from Warner's board, but for now the Netflix arrangement remains a possible outcome.