Netflix Withdraws Bid for Warner Bros. Discovery, Paving Way for Paramount Skydance Acquisition

Netflix has announced it will not increase its bid to acquire Warner Bros. Discovery (WBD), potentially allowing Paramount Skydance to proceed with its acquisition.

In December 2025, Netflix agreed to purchase WBD's studio and streaming assets for $82.7 billion, offering $27.75 per share. Paramount Skydance countered with an all-cash bid of $30 per share for the entire company, later increasing the offer to $31 per share.

On February 26, 2026, WBD's board determined that Paramount's revised proposal constituted a "Company Superior Proposal" under the terms of the existing merger agreement with Netflix. This decision triggered a four-business-day period for Netflix to propose revisions to its offer.

Netflix co-CEOs Ted Sarandos and Greg Peters stated: "The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid."

With Netflix's withdrawal, WBD may now proceed with Paramount Skydance's offer, pending shareholder approval and regulatory review.