Paramount Wins Bidding War for Warner Bros. Discovery After Netflix Exits

Netflix declines to match Paramount’s updated offer for the storied entertainment company

In a stunning move, streaming giant Netflix, Inc. today announced that it has declined to raise its offer for Warner Bros. Discovery, leaving David Ellison’s Paramount Skydance as the likely winner in the battle to acquire the studio.

In a statement from Netflix CEOs Ted Sarandos and Greg Peters on Thursday, the streaming giant announced it would be exiting the proposed deal, outlining that it was “no longer financially attractive” and that it “was always a ‘nice to have’ at the right price, not a ‘must-have’ at any price.”

“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.”

Netflix’s latest offer was to purchase it at $27.75 a share, but Paramount swooped in and sweetened the deal, countering with an astounding $31 per share that also included several other so-called sweeteners. The streaming giant was then given four days to make a counteroffer. But ultimately, that never happened.

With Netflix now out of the picture, Paramount’s latest bid is almost a sure thing to be accepted by Warner’s board, which had determined earlier Thursday that it was the “superior proposal”.

This move marks a major turning point in the Hollywood landscape, as critics have said that the move signals the “death knell” for the traditional studio system as it struggles to survive against tech-heavy competitors.

David Zaslav, president and CEO of Warner Bros. Discovery, welcomed the superior proposal from 
Paramount after Netflix dropped out. He stated,

“Netflix is a great company and throughout this process Ted, Greg, Spence and everyone there have been extraordinary partners to us. We wish thewell in the future. Once our Board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders. We are excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery and can’t wait to get started working together telling the stories that move the world.”

By merging with Warner Bros. Discovery, Paramount will transition from a medium-sized player into a “media and technology enterprise” with a massive footprint across every entertainment sector.

Of course, the Paramount deal is not necessarily a done deal. It still has major hurdles to pass, including U.S. and European regulators formally signing off, along with the politics of it all that is sure to make some waves.

Nevertheless, Netflix shares soared by more than 10% in after-hours trading after Sarandos and Peters said, “they will continue to invest cash into their own content.”

Warner Bros. Discovery Board is expected to formally vote to adopt the Paramount merger agreement as early as Friday, February 27, followed by a shareholder vote scheduled for March 20, 2026.