Netflix granted Warner Bros. Discovery (WBD) a strict one-week waiver to engage with Paramount Skydance and resolve a massive bidding war for the historic studio.
This “ultimatum” is not about content leaving Netflix, but rather a final deadline for WBD to decide on its future ownership.
The Bidding War: Netflix vs. Paramount
The entertainment industry is currently witnessing a high-stakes battle for control of WBD’s assets.
- The Netflix Deal: Netflix has a board-recommended agreement to acquire WBD’s streaming (Max) and studio businesses for approximately $83 billion. This deal would spin off WBD’s linear cable networks (like CNN and Discovery) into a separate entity called Discovery Global.
- The Paramount Counter-Offer: Paramount Skydance, led by David Ellison, has launched a $108 billion hostile bid for the entirety of WBD, including its cable networks.
The One-Week Deadline (Feb 17 – Feb 23)
Netflix, which holds a “no-shop” clause in its merger agreement, provided a narrow window for WBD to seek a “best and final offer” from Paramount.
| Feature | Details |
| The Deadline | February 23, 2026 |
| The Goal | To force Paramount to either raise its offer (reportedly to $33+ per share) or step aside. |
| Netflix’s Stance | Confident in its “superior value,” Netflix claims it granted the waiver to “finally resolve this matter” and stop the ongoing market distraction. |
| WBD Board Position | Continues to unanimously recommend the Netflix merger despite the higher headline price of the Paramount bid. |
What Happens Next?
If Paramount fails to submit an “actionable, binding proposal” that the WBD board deems superior by Monday, February 23, the Netflix deal will proceed to a shareholder vote.
- March 20, 2026: WBD has already scheduled a special meeting for shareholders to vote on the Netflix merger.
- Regulatory Scrutiny: Both deals face intense antitrust reviews. Netflix argues its merger is “vertical” (distributor + supplier) and easier to pass, while Paramount claims its deal is faster because it keeps the company whole.
Summary of the “Ultimatum”
“We granted WBD a narrow seven-day waiver… to allow them to engage with [Paramount] to fully and finally resolve this matter.” — Official Netflix Statement, Feb 17, 2026.
