In a seismic shift for the entertainment industry, Netflix has officially withdrawn its multi-billion dollar bid to acquire Warner Bros Discovery (WBD), clearing the path for Paramount Skydance to finalize a monumental $111 billion takeover.
The decision, announced on February 26, 2026, followed a dramatic week in which WBD’s board of directors declared Paramount’s revised offer as a “superior proposal.” While Netflix had been the frontrunner since December, the streaming giant’s leadership ultimately chose fiscal discipline over a bidding war, marking the end of a high-stakes corporate battle that has captivated Hollywood for months.
The winning bid from Paramount, led by CEO David Ellison, values Warner Bros Discovery at $31.00 per share. Unlike Netflix’s proposal, which focused primarily on acquiring WBD’s film studios and the Max streaming service, Paramount’s offer is for the entirety of the company. This means iconic assets such as HBO, the DC Universe, and Harry Potter will now be housed alongside Paramount’s own heavy hitters like CBS, Nickelodeon, and Top Gun. The deal also includes a staggering $7 billion regulatory termination fee, signaling Paramount’s confidence in navigating the intense antitrust scrutiny expected from global regulators.
Netflix co-CEOs Ted Sarandos and Greg Peters expressed in a joint statement that while they would have been “strong stewards” of Warner’s legendary brands, the transaction had become “no longer financially attractive” at the higher price point. They emphasized that for Netflix, the acquisition was a “nice to have” rather than a strategic necessity, noting that their business continues to grow organically with an estimated $20 billion investment in original content slated for 2026 alone. Following the withdrawal, Netflix shares surged by over 10% in after-hours trading, as investors cheered the company’s commitment to capital discipline.
The merger of Paramount and Warner Bros Discovery will create an unprecedented media titan, combining two of the “Big Five” Hollywood studios and two major news operations, CNN and CBS News. Industry analysts suggest that the eventual integration of Paramount+ and Max could create a streaming platform with the scale to directly challenge Disney and Netflix for global dominance. However, the deal remains subject to approval by WBD shareholders and faces a rigorous review process by the Department of Justice, with concerns regarding market concentration and political influence already being raised by lawmakers.