Netflix bows out as Paramount raises the stakes in Warner Bros. bidding war

Netflix has officially bowed out of the race to acquire Warner Bros., declining to match Paramount Skydance’s higher offer for the media giant.

In a statement on February 26, co-CEOs Ted Sarandos and Greg Peters framed the decision as a matter of financial discipline. “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” they said. “However, 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 bid.”

Netflix added that its business remains strong, with plans to invest about US$20 billion in films and series this year, alongside the resumption of its share repurchase program.

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Warner Bros. Discovery (WBD) confirmed the development, stating that its board has determined Paramount Skydance’s revised US$31-per-share proposal constitutes a “company superior proposal” under the terms of its existing merger agreement with Netflix.

The board said this triggers a four-business-day window during which Netflix could try to revise its offer, though the period has concluded without Netflix matching the bid.

Paramount, meanwhile, welcomed WBD’s determination. The company’s revised offer not only increased the purchase price but also included accelerated “ticking fees”, an expanded US$7 billion regulatory termination fee, and commitments to cover Netflix’s US$2.8 billion termination fee if the deal goes through.

In a statement on 24 February, Paramount said it looks forward to engaging constructively with WBD to deliver benefits for shareholders, creators, and consumers alike.

The latest development leaves Paramount in pole position for Warner Bros., while Netflix returns its focus to organic growth and content expansion.

The bidding war dates back to December 2025, when Paramount launched a US$108.4 billion all-cash bid, directly challenging Netflix’s US$82.7 billion deal. At the time, Paramount described its US$30-per-share offer as a “superior and more certain” alternative, delivering US$18 billion more to WBD shareholders and avoiding the regulatory and antitrust complexities facing Netflix.

Paramount also pledged to invest in creative output, maintain theatrical releases, strengthen streaming and sports rights, and build a more competitive direct-to-consumer platform.

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