Warner Bros reopens takeover talks with Paramount after receiving a waiver from Netflix

Warner Bros. Discovery is briefly reopening takeover talks with Skydance-owned Paramount to hear the company’s “best and final” offer, while the Hollywood giant continues to back the studio and streaming deal it struck with Netflix.

In a Tuesday regulatory filing, Warner said it had received a waiver from Netflix to reopen talks with Paramount for the next seven days, or until Monday. Warner said this will allow the companies to discuss unresolved “deficiencies” and “clarify certain terms” of Paramount’s latest bid.

But in the meantime, Warner’s board is still recommending shareholders support of its proposed merger with Netflix. A special meeting is now scheduled for Friday, March 20 to hold a vote on that deal.

In a statement, Netflix said it was confident that its proposed transaction “provides superior value and certainty” — but recognized “the ongoing distraction for WBD stockholders and the broader entertainment industry caused by PSKY’s antics.” The streaming giant noted it had granted Warner a seven-day waiver to “finally resolve this matter.”

Warner’s leadership similarly reiterated its support for the Netflix deal.

Meanwhile, Paramount called Tuesday’s actions from Warner’s board “unusual” and said the company could have determined whether Paramount’s offer was superior without a timed deadline. Still, Paramount said it was “nonetheless prepared to engage in good faith and constructive discussions.”