Los angeles: Warner Bros. Discovery (WBD) announced Tuesday it will reopen talks with Paramount Skydance under a seven-day waiver from Netflix to discuss 'deficiencies' in Paramount's offer to acquire WBD.

According to Anadolu Agency, Netflix has provided WBD a limited waiver under the terms of WBD's merger agreement with Netflix, permitting WBD to engage in discussions with Paramount Skydance (NASDAQ: PSKY) for a seven-day period ending on February 23, 2026. This waiver is intended to facilitate clarity for WBD stockholders and allow PSKY the opportunity to present its best and final offer.

During this period, WBD plans to engage with PSKY to address unresolved deficiencies and clarify certain terms of PSKY's proposed merger agreement. The discussions are crucial as a deal between the US media and entertainment company and the studio divisions of the legacy media company and Netflix is still pending.

Paramount, having lost to Netflix in a previous bidding war, had made a hostile tender offer directly to WBD stockholders at $30 per share. Although Paramount's leadership has repeatedly asserted that this all-cash offer is not their "best and final," they introduced "enhancements" to the offer last week without increasing the value per share.

A senior Paramount representative indicated to a WBD board member a willingness to offer $31 per share if negotiations were to resume, as stated by Warner Bros. on Tuesday.

Netflix will retain the matching rights granted by the merger agreement after the brief waiver period, as confirmed by WBD. Additionally, WBD announced that its board continues to unanimously support the Netflix acquisition over Paramount's bid. A special meeting of shareholders is scheduled for March 20.

Netflix emphasized that the date of the shareholder meeting marks an "important milestone for our transaction with WBD." In a statement, Netflix expressed confidence that their transaction offers superior value and certainty, while acknowledging the ongoing distraction for WBD stockholders and the broader entertainment industry caused by PSKY's actions. Consequently, Netflix granted WBD a narrow seven-day waiver of certain obligations under their merger agreement to allow WBD to engage with PSKY and fully resolve the matter.