Netflix Withdraws Bid for Warner Bros. Discovery Amid Paramount's Superior Offer

Netflix has decided to withdraw its bid to acquire Warner Bros. Discovery (WBD), following Paramount Skydance's increased offer. In December 2025, Netflix had proposed a $72 billion acquisition of WBD's film studio and streaming assets. However, Paramount Skydance presented a superior bid of $31 per share, valuing WBD at approximately $110.9 billion.

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."

This decision allows Paramount Skydance to proceed with its acquisition of WBD, pending regulatory approvals. The merger is expected to significantly reshape the entertainment industry landscape, combining major film studios and streaming services under one entity.

In related developments, over 1,000 Hollywood professionals, including more than 75 Academy Award winners and nominees, have publicly opposed the merger between Paramount Skydance and WBD. In an open letter, they raised concerns about the deal's impact on the film industry's creative and theatrical landscape.

Netflix's stock responded positively to the news, rising as much as 10% in after-hours trading. Shares in Paramount also saw an increase of 4.5%.

As the industry continues to evolve, Netflix remains focused on its core business and future growth opportunities, while Paramount Skydance moves forward with its plans to acquire WBD.