Netflix Drops Warner Bros Bid, Paving Way for Paramount Takeover

Published: 27 February 2026. The English Chronicle Desk. The English Chronicle Online

Netflix Inc has formally abandoned its bid to acquire Warner Bros. Discovery, a dramatic turn in what had become one of the most high-profile takeover contests in the media industry this year. The streaming giant said it would not match a rival offer from Paramount Skydance, effectively clearing the path for Paramount to assume control of Warner Bros’s storied media assets.

Netflix entered the bidding in December with an all-cash proposal valued at about $83 billion to buy Warner Bros’s film and television studio operations and its streaming service, HBO Max. The deal would have solidified Netflix’s position as a dominant force across content production and distribution.

However, Paramount Skydance — backed by billionaire David Ellison and significant financing — countered with an enhanced bid of $31 per share for the entire Warner Bros. Discovery company, valuing the takeover around $111 billion. That offer includes obligations to cover termination fees owed to Netflix and added financial protections intended to reassure investors.

Warner Bros. Discovery’s board determined that Paramount’s proposal constituted a “superior proposal” under the terms of its merger agreement with Netflix. Under those terms, Netflix was granted a four-business-day window to respond with a revised offer, but the company said it would not raise its bid. “At the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive,” Netflix said in a statement.

Netflix co-CEOs Ted Sarandos and Greg Peters framed the decision as disciplined financial management rather than withdrawal from strategic ambition. Netflix’s shares rose sharply following the announcement, reflecting investor approval of the company’s choice not to commit to a more expensive acquisition.

Paramount’s offer shifts the competitive landscape in Hollywood and U.S. media. If approved by regulators and shareholders, the transaction would bring together Paramount’s existing studios and networks — including CBS and Paramount+ — with Warner Bros. Discovery’s holdings, which span popular franchises like DC Comics films, “Harry Potter”, and linear networks such as CNN, TBS, and Discovery Channel.

The proposed merger has prompted scrutiny from regulators. California’s attorney general has stated that the deal is not yet finalized and emphasized potential antitrust concerns, warning that further consolidation in the media sector might adversely affect consumer choice and jobs.

Critics — including some U.S. senators — have voiced apprehension about concentrated media ownership and the political influence of major backers of the Paramount bid. Supporters of the deal argue it could help incumbent studios compete with deep-pocketed tech competitors in streaming and content production.

With Netflix out of the bidding war, attention now turns to regulatory review and the upcoming approvals process from shareholders and government authorities. A successful Paramount takeover would reshape the structure of one of the last large independent media conglomerates in the United States and mark a new chapter in the evolution of global entertainment companies.

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