Paramount Skydance to Acquire Warner Bros. Discovery After Netflix Withdraws Bid

The path is now clear for Paramount Skydance to acquire Warner Bros. Discovery (WBD) after Netflix announced it would not match Paramount’s latest offer. This decision concludes a complex bidding war and sets the stage for a significant consolidation in the entertainment and media industry.

Netflix Drops Out of the Running

Netflix declined to raise its bid beyond $27.75 a share, totaling approximately $82.7 billion, after Warner Bros. Discovery’s board of directors determined that Paramount Skydance’s revised offer of $31 per share constituted a “superior proposal.” CBS News reported the news on Thursday, February 26, 2026. Netflix co-CEOs Ted Sarandos and Greg Peters stated that although the initial deal offered shareholder value and a clear regulatory path, matching Paramount Skydance’s offer was no longer financially attractive.

Paramount Skydance’s Winning Bid

Paramount Skydance’s winning bid is an all-cash offer of $31 per share for Warner Bros. Discovery. CNBC notes that Paramount agreed to pay a $2.8 billion breakup fee to Netflix as a result of terminating the previous agreement. The deal encompasses the entirety of WBD, including its pay-TV networks such as CNN, TBS, and TNT.

Regulatory Hurdles and Next Steps

While Paramount Skydance has secured a deal with WBD, the acquisition still requires approval from Warner Bros. Discovery shareholders and federal regulators. The Wikipedia entry on the proposed acquisition notes that the deal has been subject to scrutiny and discussion since fall 2025. Antitrust concerns are expected to be a major focus of the regulatory review, as evidenced by Netflix executive Ted Sarandos’ meetings with Trump administration officials and Justice Department staff to discuss potential antitrust investigations related to the Netflix-WBD deal.

Warner Bros. Discovery’s Response

Warner Bros. Discovery CEO David Zaslav expressed gratitude towards Netflix for their partnership throughout the process, stating, “Netflix is a great company and throughout this process Ted, Greg, Spence and everyone there have been extraordinary partners to us. We wish them well in the future.” CNBC reported on Zaslav’s statement.

Key Takeaways

• Netflix has withdrawn its bid for Warner Bros. Discovery.
• Paramount Skydance’s $31 per share offer has been accepted as superior.
• The acquisition is subject to shareholder and regulatory approval.
• Antitrust concerns are anticipated to be a key part of the regulatory review.