Warner Bros Discovery: Netflix Deal Has an Escape Clause
Warner Bros. Discovery board members are currently evaluating a revised bid from Paramount Global, potentially complicating the media giant’s previously agreed-upon $83 billion acquisition by Netflix, according to a report by CNBC on February 15, 2026.
The initial agreement, announced in early December 2025, would have seen Netflix acquire Warner Bros. Discovery in an all-cash transaction valued at $27.75 per share, as amended on January 20, 2026. The revised structure, detailed in a preliminary proxy statement filed with the Securities and Exchange Commission, was intended to provide greater certainty for Warner Bros. Discovery stockholders and accelerate the timeline for a shareholder vote, which is now expected by April 2026.
Although, Paramount’s increased offer has prompted Warner Bros. Discovery’s board to reconsider its options, with the possibility of reopening negotiations with Paramount or potentially pushing Netflix to increase its offer, Bloomberg reported. The move comes after Warner Bros. Discovery initially explored a sale following unsolicited interest from multiple parties, driven by the company’s substantial debt and the challenges facing traditional media companies in the streaming era.
Netflix’s acquisition of Warner Bros. Discovery, encompassing assets like HBO, HBO Max, and the DC Comics franchise, was widely considered a landmark deal poised to reshape the entertainment industry. The deal would bring together Netflix’s subscriber base of over 325 million with Warner Bros. Discovery’s extensive content library. Netflix pledged to continue theatrical releases for Warner Bros. Discovery films, a commitment made despite the streaming service’s origins in at-home entertainment.
The amended agreement with Netflix included an all-cash structure, designed to simplify the transaction and provide a more definitive value for Warner Bros. Discovery shareholders. In addition to the cash payment, Warner Bros. Discovery stockholders are also slated to receive additional value from shares of Discovery Global following its separation from WBD. Netflix intends to finance the acquisition through a combination of existing cash reserves, credit facilities, and committed financing, while maintaining a “healthy balance sheet” and flexibility for future investments.
As of February 16, 2026, Warner Bros. Discovery has not publicly commented on the status of negotiations with Paramount or whether it intends to solicit a higher offer from Netflix.