The news: Netflix gave Warner Bros. Discovery (WBD) a seven-day waiver to reopen talks with Paramount Skydance, reviving a contest that appeared settled after WBD agreed in December to sell its studio and streaming assets to Netflix for $82.7 billion. Paramount has until February 23 to submit a best and final offer, and once the waiver expires, Netflix can match or exceed any superior bid.

• The talks follow months of pressure from Paramount, which lost to Netflix and then launched a hostile $30-per-share bid, saying it wasn’t final. A representative told WBD it would raise the offer to $31 or more if talks resumed.
• Even as talks resume, WBD’s board still unanimously backs the Netflix deal, which (unlike Paramount’s) would separate WBD’s studio and streaming units from its legacy TV networks.
• Markets reacted quickly; WBD and Paramount shares rose on renewed talks, while Netflix fell near a 16-month low. WBD’s March 20 shareholder vote on the Netflix deal remains on the calendar.

Why it matters: Whichever buyer WBD chooses will not only get ownership of a prize asset; it will gain market power in a streaming sector where churn is rising and profitability remains under pressure.

• Netflix has more than 835 million global viewers, while HBO Max has roughly 125 million; combining them would create unmatched subscription scale and a dominant premium library spanning HBO, DC, Warner Bros., and Netflix originals.