Netflix walks away as Paramount Skydance wins bid for Warner Bros. Discovery

Netflix has declined to raise its offer for Warner Bros. Discovery (WBD) after the company’s board determined that a revised bid from Paramount Skydance was superior.

Paramount bid $31 per share

Paramount increased its all-cash offer to $31 per share, up from $30, surpassing Netflix’s previous agreement to acquire WBD’s studio and streaming assets for $27.75 per share. Paramount’s proposal covers the entire company, including pay-TV networks such as CNN, TBS, and TNT. The offer also includes a $7 billion breakup fee if regulators block the deal, and Paramount agreed to cover the $2.8 billion breakup fee WBD would have owed Netflix.

Netflix chose not to match the higher offer

Although Netflix had four business days to revise its bid, the company chose not to match the higher offer. Co-CEOs Ted Sarandos and Greg Peters said the deal was no longer financially attractive at the increased price, emphasizing that the acquisition was a “nice to have,” not a necessity.

WBD CEO David Zaslav thanked Netflix for its partnership but expressed enthusiasm about the potential merger with Paramount Skydance, saying it would create significant shareholder value.

Following the announcement, Netflix shares rose 10% in extended trading, Paramount gained 5%, and WBD shares fell 2%.

The decision concludes a prolonged bidding battle marked by multiple revised offers and public tensions between the competing bidders.

Source: https://www.cnbc.com/2026/02/26/warner-bros-discovery-paramount-skydance-deal-superior-netflix.html