Warner Bros. Discovery said on Tuesday that it would restart the deal talks with Paramount Skydance that it ended in December, giving the company another chance at besting Netflix for a deal.

Whether Warner Bros. sells to Ted Sarandos’ Netflix or David Ellison’s Paramount remains to be seen — but Sarandos is adamant that a merger is coming no matter what.

A person close to the situation called it a “put up or shut up” moment for Paramount, which has made a $108bn hostile bid for the entire company, including the cable TV assets that are not part of the...