The exclusive negotiation window between Paramount Global and Warner Bros. Discovery (WBD), granted by rival bidder Netflix, expired at midnight on Monday. Paramount, backed by David Ellison's Skydance, has been in direct talks with WBD's leadership but has not yet submitted a "best and final" offer for the media giant.
Netflix waived its exclusivity for one week to allow the talks, stating it hoped the discussions would "fully and finally resolve" the protracted takeover saga, which it called an "ongoing distraction" for shareholders of both companies. Despite the waiver's expiry, Paramount is under no contractual obligation to increase its bid immediately.
Shareholder Vote is the Real Deadline
The critical deadline for Paramount is tied to an upcoming WBD shareholder vote. "Anyone can make an offer up to the shareholder vote," a source familiar with the negotiations told Business Insider. That vote is scheduled for 20 March, where investors will decide on Netflix's rival offer.
Paramount has set a 2 March deadline for WBD shareholders to tender their shares to its offer, though this could be extended. If Paramount secures a majority of shares, it could steer WBD away from Netflix's proposal. This timeline means Paramount has several weeks to potentially revise its bid, though it could act sooner.
Contrasting Offers and Strategic Arguments
The competing proposals present a stark choice for WBD. Netflix has made an all-cash offer of $27.75 per share specifically for WBD's studio and streaming assets. Paramount's bid, valued at $30 per share, is for the entire company, including its cable television networks.
WBD's board has stated a preference for the Netflix deal. Last week, it warned employees that a Paramount acquisition could trigger a wave of resignations ahead of potential major layoffs. Paramount has projected it could achieve $6 billion in cost savings, compared to Netflix's estimated $2-3 billion.
In its advocacy, Paramount frames Netflix as the dominant threat to Hollywood, citing its leading streaming subscriber count. Netflix counters that its true competition includes free platforms like YouTube.
Political Dimension Adds Complexity
The high-stakes corporate battle has drawn comments from US President Donald Trump, introducing a political variable. In December, he suggested Netflix's acquisition "could be a problem" on antitrust grounds, before stating in early February he "shouldn't be involved" in the regulatory process.
A White House spokesperson later clarified the president is "neutral in this process with no preference for either bidder." Over the weekend, Trump separately called for Netflix to remove former Obama and Biden administration official Susan Rice from its board.
Netflix co-CEO Ted Sarandos dismissed the political remarks on Monday, asserting the bid for Warner Bros. is "not a political deal." Should Paramount raise its offer, Netflix will have a four-day period to respond under the existing agreement.