In a dramatic turn in one of Hollywood's biggest corporate battles, Netflix has stepped away from its bid to acquire Warner Bros Discovery after rival Paramount Skydance submitted a significantly higher offer. The move reshapes the future of one of the entertainment industry's most closely watched takeover negotiations.
Netflix exits after higher bid
For months, Netflix had been widely seen as the frontrunner after revealing plans to acquire key Warner Bros assets through a multibillion-dollar deal. However, Warner Bros' board announced on Thursday that Skydance-owned Paramount's revised proposal, offering $31 per share for the entire company, was superior to Netflix's earlier agreement.
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Soon after the announcement, Netflix confirmed it would not increase its offer, saying the revised valuation no longer aligned with its financial strategy.
Hindustan Times quoted a joint statement by Netflix co-CEOs Ted Sarandos and Greg Peters saying, "We believe we would have been strong stewards of Warner Bros.' iconic brands. But this transaction was always a 'nice to have' at the right price, not a 'must have' at any price."
The company's withdrawal ends a months-long and often complicated negotiation over Warner Bros Discovery's future ownership. Sarandos and Peters also thanked Warner's leadership despite the outcome.
Paramount takes the lead
Warner Bros had supported Netflix's earlier proposal, valued at roughly $83 billion including debt, since December. That changed when Paramount enhanced its bid, valuing the full acquisition at about $111 billion, including debt and revised terms.
Unlike Netflix, which focused primarily on Warner's studio and streaming divisions, Paramount's proposal seeks to acquire the entire company. The scale of the offer placed immediate pressure on Netflix, which was given four business days to submit a counteroffer before ultimately stepping aside.
If completed, the merger would bring HBO Max, major franchises such as Harry Potter, and CNN under the same corporate umbrella as Paramount's CBS network, Top Gun franchise, and its streaming platform.
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Regulatory hurdles ahead
The proposed combination still requires approval from Warner shareholders and regulatory authorities, with potential antitrust scrutiny expected.
Warner Bros CEO David Zaslav acknowledged Netflix's role in the process, saying its executives had been "extraordinary partners" and adding he wished them "well in the future". He noted that once formally adopted, the Paramount agreement "will create tremendous value".
