Netflix Withdraws $83 Billion Bid for Warner Bros. Discovery

On 26/02/2026, Netflix officially withdrew its $83 billion bid to acquire Warner Bros. Discovery, ending a months-long bidding contest and clearing the way for Paramount Skydance to proceed with a higher $111 billion takeover proposal. The withdrawal followed Warner Bros. Discovery’s board determination that Paramount Skydance’s revised offer of $31 per share constituted a “superior proposal” compared to Netflix’s $27.75 per share bid. In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters said the transaction was “no longer financially attractive” at the valuation required to outbid Paramount Skydance. They described the acquisition as a “nice to have” rather than a “must have,” signaling a strategic decision to prioritize financial discipline over scale expansion. The proposed acquisition would have combined Netflix’s global streaming platform with Warner Bros. Discovery’s portfolio, which includes HBO Max, CNN, and the Warner Bros. film studio. As part of the revised agreement between Warner Bros. Discovery and Paramount Skydance, the latter agreed to cover the $2.8 billion termination fee owed to Netflix for walking away from the December 2025 merger agreement. The fee had been negotiated when Netflix and WBD initially entered into an exclusive merger arrangement late in 2025. Financial markets responded quickly to the announcement. Netflix shares rose nearly 10 percent in after-hours trading on 26/02/2026, reflecting investor reaction to the company’s decision not to increase its bid. Analysts cited concerns in prior weeks about the potential debt load and integration risks associated with acquiring legacy media assets. With Netflix no longer in contention, Paramount Skydance stands as the sole primary bidder for Warner Bros. Discovery. The $111 billion transaction, which covers the entirety of WBD’s operations and intellectual property assets, is expected to close between September and December 2026, subject to regulatory review and shareholder approval. If completed, the deal would reshape the U.S. media and streaming landscape by consolidating major film, television, and news brands under Paramount Skydance ownership.