NEW YORK – The high-stakes tug-of-war for Warner Bros. Discovery (WBD) has reached a critical juncture. On February 17, 2026, WBD’s board of directors issued a strict seven-day ultimatum to Paramount Skydance, giving the David Ellison-led group until February 23 to submit a “best and final” offer that can surpass the existing $83 billion agreement with Netflix.
While WBD remains officially committed to the Netflix merger, this “narrow seven-day waiver”—granted with Netflix’s consent—marks the first formal opening for Paramount to break the definitive agreement signed in December 2025.
Two Divergent Futures for WBD
The battle is not just about price, but about the very structure of the legendary media giant:
- The Netflix Vision ($82.7bn): Netflix seeks only the Studio and Streaming assets (Warner Bros. Pictures, HBO, Max). Under this deal, WBD’s linear networks (CNN, TNT Sports US, Eurosport) would be spun off into a new independent entity called Discovery Global by mid-2026.
- The Paramount Vision ($108.4bn+): Paramount’s hostile bid is for the entirety of WBD. This would combine two of Hollywood’s “Big Five” studios and merge their massive sports portfolios (CBS Sports + TNT Sports) into a single global powerhouse.
The Sports Rights Ripple Effect
The outcome of this week’s negotiations will dictate the future of major sports broadcasting across the globe:
| Asset | If Netflix Wins | If Paramount Wins |
| TNT Sports (US) | Spun off into Discovery Global; stays with the “linear” remnants. | Merged with CBS Sports to create a dominant US broadcaster. |
| TNT Sports (UK) | Acquired by Netflix; likely becomes a paid add-on within the app. | Merged with Channel 5 and Paramount+ UK. |
| Eurosport | Becomes part of Discovery Global; independent of the Netflix core. | Integrated into the Paramount+ global sports ecosystem. |
The “Ticking Fee” and the $31 Target
Paramount has signaled a willingness to raise its bid to $31 per share (up from $30), backed by a personal guarantee from Oracle founder Larry Ellison. To sweeten the deal and combat regulatory delays, Paramount also introduced a $0.25 per share “ticking fee” for every quarter the deal remains unclosed beyond 2026.
Despite these moves, WBD CEO David Zaslav maintains that the Netflix merger provides “superior value and certainty,” citing fewer regulatory hurdles for a vertical merger compared to Paramount’s massive horizontal consolidation.