David Ellison's Paramount has some breathing room in its quest to buy WBD despite a pressing deadline

Business Insider

February 23, 2026

AI-Generated Deep Dive Summary

David Ellison’s Paramount Skydance has secured additional time in its bid to acquire Warner Bros. Discovery (WBD), with a critical shareholder vote set for March 20. Despite facing pressure from Netflix, which previously blocked direct negotiations between Paramount and WBD, the two companies have been able to engage directly since last week. Netflix granted WBD a weeklong waiver on exclusivity, allowing talks between Paramount and WBD to potentially resolve the prolonged acquisition saga. While Paramount hasn’t yet submitted its “best and final” offer, it doesn’t face an immediate deadline to do so, as the shareholder vote remains weeks away. Paramount’s bid for WBD is a high-stakes play in the media landscape. WBD shareholders will decide whether to approve Netflix’s $27.75-per-share offer or tender their shares to Paramount, which has offered $30 per share for the entire company. If Paramount secures majority support, it could shift WBD’s focus away from Netflix and toward its own strategic vision. However, WBD leadership has expressed a preference for Netflix’s deal, citing concerns about potential layoffs under Ellison’s cost-cutting plans, which include $6 billion in savings compared to Netflix’s more modest $2-3 billion. The acquisition race also reflects broader industry dynamics. Paramount views Netflix as Hollywood’s biggest threat due to its dominant streaming subscriber base and viewership share. Netflix, in turn, dismisses the deal as a non-political business move, despite former White House official Susan Rice’s criticism of President Trump’s influence on corporate decisions. Trump himself has weighed in, previously suggesting concerns about Netflix’s market dominance but later claiming neutrality in the process. This unfolding drama matters to readers interested in business and media because it could reshape the entertainment industry. The outcome will determine whether WBD aligns with Netflix or Paramount, impacting streaming competition, job stability, and future content production. With billions at stake and potential regulatory hurdles, the deal’s resolution could set a precedent for future mergers and acquisitions in the sector.

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Originally published on Business Insider on 2/23/2026