Netflix has withdrawn its proposal to buy Warner Bros Discovery, clearing the way for Paramount Skydance to take over the company after a months-long bidding battle.
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Warner Bros said on Thursday that Paramount’s latest offer was superior to Netflix’s bid. It had urged Netflix to increase its proposal.
Paramount recently raised its offer to $31 per share in cash, up from $30. The bid covers the entire company.
Netflix co-chief executives Ted Sarandos and Greg Peters said matching the new price was no longer financially attractive. “We’ve always been disciplined,” they said in a statement.
They added that the deal had been a “nice to have” at the right price, not a “must have” at any price. The announcement came hours after Sarandos visited the White House.
In December, Warner Bros agreed to sell its film and streaming divisions, including HBO, to Netflix for $27.75 per share, valuing the deal at about $82bn including debt. The company had planned to spin off its traditional television networks and CNN as a separate business.
Paramount, backed by technology billionaire Larry Ellison and led by his son David Ellison, later made a rival offer. Paramount had previously been rebuffed by Warner Bros.
David Ellison welcomed the board’s decision to favour Paramount’s improved bid. He said it offered shareholders superior value, certainty and speed to closing.
Paramount also agreed to pay a $7bn fee if the deal fails. In addition, it will cover the $2.8bn break-up fee Warner Bros had agreed to pay Netflix if their merger was cancelled.
If approved by regulators, Paramount would combine Warner Bros’ HBO Max subscribers with its own portfolio. It would also gain control of CNN, the Food Network and various sports assets.
Paramount’s existing networks include Nickelodeon, CBS and Comedy Central.
The proposed sale is expected to have significant effects across Hollywood. Industry observers have raised concerns about potential job cuts as production levels in Los Angeles remain under pressure.
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Adapted by ASEAN Now · Source · 26 Feb 2026