The corporate future of Warner Bros. Discovery (A) is at the center of a heated takeover battle. With a planned merger already in place with Netflix, the media giant has now reopened discussions with a rival suitor, Paramount Skydance, allowing it to revise its unsolicited bid. This strategic move comes just weeks before a critical shareholder vote on the existing deal.
Shareholder Vote and a Rival Deadline
Warner Bros. Discovery has scheduled a special shareholder meeting for March 20, 2026, where investors will be asked to approve the all-stock merger with Netflix. That transaction carries an estimated value of $82.7 billion, equating to roughly $27.72 per share, plus the assumption of nearly $10 billion in debt. The company’s board has unanimously recommended shareholders vote in favor of this agreement, citing a clear regulatory approval path.
However, a new variable has been introduced. According to reports from CBS News and the Los Angeles Times, Warner Bros. Discovery has granted Paramount Skydance a deadline of February 23, 2026—this Sunday—to submit its “best and final” proposal. Paramount recently increased its cash offer to $30.00 per share, which values the company at approximately $108.4 billion.
Board Scrutinizes Competing Proposals
CEO David Zaslav and the board of directors have emphasized they are willing to evaluate whether Paramount can present a binding offer that provides “superior value and certainty” compared to the Netflix arrangement. This official stance maintains the Netflix deal as the recommended course while formally acknowledging the competing bid.
Should investors sell immediately? Or is it worth buying Warner Bros. Discovery (A)?
The timing of these developments places significant pressure on all parties. The Paramount deadline expires just three days before Warner Bros. Discovery is set to announce its fourth-quarter and full-year 2025 financial results on February 26, 2026. These figures will offer the first detailed look at operational performance during the ongoing takeover contest.
Market Reaction and Analyst Expectations
Market analysts anticipate the upcoming earnings report will show a narrower per-share loss compared to the previous quarter, though they project year-over-year revenue declines. Investor sentiment currently reflects widespread uncertainty about whether either transaction will ultimately be completed.
Trading just below the $30-per-share mark offered by Paramount, the stock’s hesitant price action underscores the market’s caution. The coming days will be decisive, revealing if Paramount submits a revised bid and whether the takeover race is fundamentally reshaped as a result.
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