Paramount Skydance has announced an extension of its hostile tender offer for Warner Bros Discovery, pushing the deadline to February 20. The extension grants the bidder additional time to convince shareholders that its offer surpasses the competing deal put forth by Netflix. This development represents the latest episode in a competitive race to secure control over Warner Bros Discovery’s prized assets, notably its iconic film and television studio as well as its expansive catalogue of movies and programming.
To comprehend the full scope of the current contest, it is illustrative to review the complex history of the Warner Bros enterprise, whose lineage is deeply intertwined with the evolution of the American media landscape.
Starting with foundational origins, Time Inc was established in 1922 by Henry Luce and Briton Hadden to publish Time magazine, aiming to present global affairs in a digestible weekly format. The magazine’s inaugural issue was released in March 1923.
Shortly thereafter, in 1923, Warner Bros was founded in Hollywood by the Warner brothers – Harry, Albert, Sam, and Jack. The studio gained acclaim for pioneering synchronized sound in movies, significantly altering cinematic experiences.
Corporate transformations began in 1969 when Kinney National Company, a conglomerate that would evolve into a media-focused entity, acquired Warner Bros-Seven Arts and subsequently divested its non-media segments.
Meanwhile, in 1972, HBO was launched by Charles Dolan with financial support from Time. HBO marked the advent of subscription-based cable television in the U.S., offering uncut, commercial-free films and live sports, thus initiating premium cable TV services.
By 1990, Time Inc had merged with Warner Communications in a $14 billion transaction. This merger was lauded as a "marriage of content and distribution," birthing Time Warner, then the largest media conglomerate worldwide.
Further expansion occurred in 1996 as Time Warner merged with Turner Broadcasting. This deal added networks such as Cartoon Network, CNN, and TNT to its portfolio alongside an extensive archive of classic films.
The dawn of the new millennium saw a landmark merger when Time Warner joined forces with AOL in 2000. The resulting AOL Time Warner was the largest merger ever at its time, designed to integrate traditional media with burgeoning digital platforms.
However, challenges surfaced by 2002 as the AOL Time Warner merger faltered amid allegations of accounting irregularities and inflated revenue reports involving AOL, prompting an SEC investigation. Consequently, CEO Steve Case departed from the company in 2003.
In 2004, Time Warner divested Warner Music to a private equity consortium led by Edgar Bronfman Jr. for $2.6 billion.
Two significant divestitures occurred in 2009: full spin-offs of Time Warner Cable and AOL, marking the separation of the company from cable distribution and early internet services respectively.
Time Warner further exited the publishing arena in 2013 by spinning off its magazine division, including titles such as Time, People, Fortune, and Sports Illustrated.
In 2016, telecommunications giant AT&T announced plans to acquire Time Warner for $85 billion, an acquisition that completed in 2018 pending regulatory approval, renaming the entity WarnerMedia.
By 2021, AT&T decided to spin off WarnerMedia and combine it with Discovery Inc, resulting in a $43 billion merged company completed in 2022, rebranded as Warner Bros Discovery.
In June 2025, Warner Bros Discovery declared plans to divide into two distinct companies, one concentrating on studios and streaming, and the other on cable TV operations.
In October 2025, the Warner Bros Discovery board declined an acquisition offer from Paramount Skydance worth nearly $60 billion or $24 per share. The company simultaneously acknowledged evaluating a potential sale amid interest from multiple parties.
Subsequent reporting in November 2025 revealed Warner Bros Discovery's board sought an enhanced offer from Paramount Skydance, requesting a bid of $30 per share to value the company at $74.34 billion. Later that month and into December, the company received initial and second-round bids from Paramount Skydance, Comcast, and Netflix, including a cash-heavy bid from Netflix.
Paramount Skydance challenged the fairness of Warner Bros Discovery’s sale process, alleging preferential treatment of Netflix bidders per a letter cited by CNBC.
December 2025 witnessed Netflix entering exclusive negotiations to purchase Warner Bros Discovery’s film and TV studios along with its streaming platforms, having tendered a $28 per share offer.
Netflix reached an agreement to acquire these divisions for $72 billion or $27.75 per share, securing board approval.
Simultaneously, Paramount Skydance initiated a hostile bid pegged at $108.4 billion or $30 per share, which Warner Bros Discovery’s board rejected due to inadequate financing assurances.
Paramount Skydance revamped its bid to include a $40.4 billion personal guarantee from Larry Ellison, yet this amended offer was still rejected in early January 2026.
Subsequently, Paramount Skydance filed suit seeking disclosure of Warner Bros Discovery’s Netflix deal details and pursued nomination of its own directors to the board.
Netflix presented an all-cash offer for Warner Bros Discovery’s studio and streaming divisions, securing unanimous board approval without altering the purchase price of $82.7 billion.
In the most recent update, Paramount Skydance extended its hostile tender offer deadline to February 20, continuing its efforts to persuade investors of its bid’s merits.