Paramount Skydance to Acquire Warner Bros. Discovery After Netflix Backs Out

LOS ANGELES, CA – February 26, 2026 – In a dramatic turn of events, Paramount Skydance is set to acquire Warner Bros. Discovery (WBD) after Netflix withdrew from its bid, ending a months-long battle for the media conglomerate. The decision comes after Paramount Skydance presented a “superior proposal” of $31 per share, prompting Netflix to decline matching the offer.

Netflix’s Withdrawal and Reasoning

Netflix co-CEOs Ted Sarandos and Greg Peters explained the decision in a statement, stating that whereas the initial deal for WBD was attractive, the increased price to compete with Paramount Skydance made it “no longer financially attractive.” They emphasized that the acquisition was a “nice to have” rather than a “must have,” highlighting their commitment to financial discipline. TechCrunch reported on the details of Netflix’s withdrawal.

The Paramount Skydance Bid

Paramount Skydance’s winning bid, valued at approximately $111 billion, is about 34% higher than Netflix’s initial offer of nearly $83 billion. The New York Times detailed the escalating bids during the acquisition process. The deal is backed by Larry Ellison, executive chair of Oracle and father of Paramount Skydance CEO David Ellison, providing significant financial backing.

What’s Included in the Acquisition

The acquisition encompasses the entirety of Warner Bros. Discovery, including its studios, HBO, streaming services, games and entertainment divisions, and linear television networks such as CNN, TBS, TNT, Discovery, and HGTV. TechCrunch confirmed the scope of the assets included in the deal.

Concerns and Controversies

The Paramount Skydance takeover has sparked concerns about potential monopolistic practices and the impact on industry jobs. David Ellison’s past efforts to align with the Trump administration and eliminate DEI practices at Paramount raise questions about the future direction of the combined company. Following the acquisition of Paramount by Skydance in August 2025, the CBS News’ Race & Culture Unit was disbanded, and journalists of color were reportedly pushed out. TechCrunch highlighted these concerns.

The Producers Guild of America issued a statement in late 2025 emphasizing the need to protect producers’ livelihoods, theatrical distribution, creativity, worker opportunities, consumer choices, and freedom of speech as the industry navigates economic and technological changes.

Financial Implications and Next Steps

Warner Bros. Discovery will pay a $2.8 billion termination fee to Netflix as a result of ending the existing merger agreement. Regulators will now review the legality of the Paramount Skydance acquisition. TechCrunch reported on the financial details of the termination fee and the upcoming regulatory review.

Key Takeaways

• Netflix has backed out of its bid to acquire Warner Bros. Discovery.
• Paramount Skydance will acquire WBD for approximately $111 billion.
• The deal includes WBD’s studios, HBO, streaming services, and linear television networks.
• Concerns remain regarding potential monopolistic practices and the impact on industry diversity.
• Regulatory approval is still required for the acquisition to finalize.

The acquisition of Warner Bros. Discovery by Paramount Skydance marks a significant shift in the media landscape. The coming months will be crucial as regulators assess the deal and the industry anticipates the changes that will follow.