HOLLYWOOD — In a dramatic climax to one of the most aggressive corporate battles in media history, Netflix officially withdrew its bid for Warner Bros. Discovery (WBD) on Thursday, February 26, 2026. The move clears a direct path for Paramount Skydance, led by David Ellison, to acquire the storied entertainment giant.
The “Superior Proposal”
The retreat came just hours after the WBD Board of Directors notified Netflix that Paramount Skydance’s latest offer—a massive $111 billion total valuation at $31 per share—was deemed a “company superior proposal.” Netflix had been sitting on a December agreement to acquire WBD’s film studios and HBO/Max assets for roughly $83 billion ($27.75 per share), which would have seen WBD’s cable assets spun off.
In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters emphasized financial discipline:
”At the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive. This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
A Reshaped Media Landscape
Unlike Netflix’s targeted bid, Paramount Skydance intends to acquire the entirety of Warner Bros. Discovery, including its global linear networks like CNN, TNT, and Discovery. This merger would unite two of Hollywood’s “Big Five” studios and bring CBS and CNN under the same corporate umbrella.
What’s Next?
- WBD Board Vote: The board is expected to formally adopt the Paramount merger agreement within days.
- Regulatory Scrutiny: The deal faces significant antitrust reviews, though Paramount has pledged a $7 billion termination fee if the deal is blocked by regulators.
- Netflix Strategy: Netflix shares rose following the news as investors cheered the company’s refusal to overpay. The streamer announced it will resume its share repurchase program and focus on its $20 billion annual content budget.
WBD CEO David Zaslav praised Netflix as an “extraordinary partner” throughout the process but expressed excitement for the “tremendous value” the Paramount Skydance merger promises for shareholders.
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