Netflix Drops $83B Warner Bros Bid, Paving Way for Paramount Deal

Netflix withdrew its $83 billion bid for Warner Bros. Discovery after Paramount raised its offer, declaring the deal "no longer financially attractive."

Netflix has officially withdrawn from the bidding war for Warner Bros. Discovery, declining to raise its approximately $83 billion offer after rival Paramount Skydance submitted a sweetened proposal that Warner's board deemed "superior" . The stunning move effectively clears the path for Paramount to acquire its Hollywood rival in a deal that would reshape the entertainment landscape.

In a joint statement issued Thursday, Netflix co-chief executives Ted Sarandos and Greg Peters explained their decision not to match Paramount's latest bid, which values Warner at roughly $111 billion including debt. "The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive," they said .

The streaming giant had reached a binding agreement in December to acquire Warner's film studios and streaming operations, including HBO and HBO Max, for $27.75 per share. Paramount launched a hostile campaign shortly after, directly approaching shareholders with an offer for the entire company, including cable networks like CNN. Its revised bid of $31 per share includes a $7 billion regulatory termination fee and a commitment to cover Warner's potential $2.8 billion breakup cost with Netflix.

Sarandos and Peters emphasized the deal was always strategic rather than essential. "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. ”They reaffirmed Netflix's organic growth, announcing approximately $20 billion in 2026 content investment and plans to resume share repurchases.

A Paramount-Warner combination would unite two of Hollywood's last five legacy studios, merging vast libraries including "Harry Potter," "Superman," "Top Gun," and "The Godfather," along with networks CBS, CNN, MTV, and Nickelodeon . The deal still requires shareholder approval and regulatory review, with critics raising antitrust concerns and questions about political influence given President Trump's ties to Oracle founder Larry Ellison, whose son David leads Paramount . A shareholder vote on the original Netflix agreement was scheduled for March 20.