Netflix Drops Warner Bros. Bid as California Investigates Paramount Skydance Merger
Netflix has withdrawn its bid for Warner Bros. Discovery, paving the way for Paramount Skydance to potentially acquire the media company. However, the deal isn’t final, as California Attorney General Rob Bonta has launched an antitrust investigation into the proposed merger between Paramount and Skydance, citing concerns about market consolidation.
Netflix Exits the Race
After an ongoing saga that began in the fall of 2025, Netflix ultimately declined to increase its initial offer of $27.75 per share for Warner Bros. Discovery’s streaming and studio assets. Warner Bros. Discovery’s board accepted a revised bid from Paramount Skydance, which reached $31 per share for all of Warner Bros. Discovery.
California’s Antitrust Concerns
California Attorney General Rob Bonta announced on Thursday, February 26, 2026, that the state’s Department of Justice had opened an investigation into the Paramount Skydance merger. Bonta stated the deal had not “cleared regulatory scrutiny.”
Bonta previously voiced antitrust concerns regarding potential consolidation in the entertainment industry, given its significant impact on California’s economy. He emphasized that further consolidation could lead to increased costs for consumers, job losses, and reduced choices. “Further consolidation in markets that are central to American economic life does not serve our economy, consumers, or competition well,” Bonta said in a statement last week.
Dow Jones Performance in 2026
As of the market close on February 26, 2026, the Dow Jones Industrial Average has seen a year-to-date return of 2.99%. This follows a strong performance in 2025, with a return of 12.97% (SlickCharts).
Looking Ahead
The outcome of the California Attorney General’s investigation will be crucial in determining whether the Paramount Skydance merger can proceed. The investigation highlights the increasing scrutiny facing large media deals as regulators seek to protect competition and consumer interests. The situation remains fluid, and further developments are expected in the coming weeks.