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It seems like it’s been ages that the drama around ‘Netflix’ and ‘Paramount’ acquiring a deal with Warner Bros. continues to revolve around global attention but not be seen around finalizing.
The latest update reveals that Paramount’s quest to clinch Warner Bros. Discovery can be measured in inches.
The “Mission: Impossible” studio owned by the Ellison family improved its takeover bid for the rival entertainment empire Netflix, but only by drip-feeding out extra cash over time and funding some extra fees.
These baby steps, however, will not be enough to oust Netflix as the chosen buyer.
The sweeteners are certainly welcome, in part by acknowledging that time is money. They include about $650 million in cash for WBD shareholders each quarter after December 31, 2026, if the deal fails to secure regulatory approval.
Paramount also said it would cover the $2.8 billion termination fee WBD would owe Netflix for scrapping their agreement, among other minor tweaks.
Although it may put additional pressure on WBD boss David Zaslav, the baseline $108 billion deal, at $30 a share, hasn’t changed.
It does call attention to the idea that the more debt is bundled up with the studio and streaming divisions that Netflix wants, the less cash shareholders will pocket.
The consideration could fall as low as $21.23 per share, per Paramount’s calculations, a discount of more than 20%.
Deal offers and competing bids:
Netflix:
Netflix has a signed agreement as of early December 2025 to acquire Warner Bros.’ studio and streaming assets like HBO/Max for approximately $83 billion.
Paramount’s Hostile Bid:
Paramount has been recently attempting to disrupt the Netflix deal by going directly to shareholders with a higher $30-per-share all-cash offer, valuing WBD at over $108 billion including debt.
Latest Developments as of February 2026:
Feb 10-11, 2026: Paramount sweetened its hostile offer by adding a “ticking fee”—an extra $0.25 per share payable to WBD shareholders for each quarter the deal doesn’t close after Dec 31, 2026.
Breakup Fee Coverage: Paramount pledged to pay the $2.8 billion breakup fee that WBD would owe to Netflix if they switch to the Paramount deal.
Regulatory Status:
Paramount claims it is making faster progress with regulatory bodies, having complied with a DOJ request on February 9, 2026, and secured German regulatory clearance on January 27, 2026.
Why is the deal not getting finalized?
Despite Paramount’s higher offer, the Warner Bros. Discovery WBD board has repeatedly recommended that shareholders stick with the Netflix deal, arguing that the Netflix deal offers better long-term stability and that the Paramount offer carries higher risk.
The path for Netflix to persuade trustbusters is also precarious given its dominant position in streaming TV.
Moreover, Comcast’s recent spinoff of its cable networks, Versant Media, doesn’t bode well for the valuation of WBD’s own portfolio that it plans to list independently.
Even so, Zaslav has been able to hold his ground and stick with the Netflix deal so far.
Experts review that Paramount isn’t getting very far by limping along, and to make real strides, it will take a knockout bid.
The decision is still pending in Warner Bros. Discovery’s court on how it responds to the latest offer and locks a deal with one of the top leading media and entertainment platforms, including Netflix and Paramount.
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