Netflix Withdraws from Warner Bros Acquisition Battle, Paving Way for Paramount's Bid
Netflix exits the bidding war for Warner Bros Discovery after Paramount's higher offer, highlighting industry consolidation trends and Netflix's strategic focus on content investment.
- • Netflix withdrew its acquisition bid for Warner Bros Discovery after Paramount's superior offer.
- • Paramount's latest bid values Warner Bros at $31 per share, higher than Netflix's $27.75 per share offer.
- • Netflix deemed matching Paramount's offer financially unattractive and will focus on organic growth and content investment.
- • Paramount's bid includes additional quarterly payments and coverage of contract termination fees.
- • Warner Bros board recognized Paramount's offer as superior, prompting Netflix's exit from the contest.
Key details
Netflix has officially withdrawn its bid to acquire Warner Bros Discovery (WBD), conceding the acquisition contest to Paramount Skydance (PSKY) after Paramount presented a financially superior offer. Paramount's revised bid stands at $31 per share in cash, surpassing Netflix's previous offer of $27.75 per share. The new offer includes an additional quarterly payment of $0.25 per share starting September 30, 2026, if the deal remains unclosed by then, along with a commitment to cover the $2.8 billion penalty WBD would owe Netflix for terminating their prior agreement.
Netflix executives, including co-CEO Ted Sarandos and Greg Peters, acknowledged that while their initial deal negotiated in December was structured to generate shareholder value and had a clear path to regulatory approval, matching Paramount’s new offer was no longer financially attractive. Netflix emphasized its robust organic growth and plans to invest approximately $20 billion in content this year, signaling confidence in its standalone business model despite exiting the Warner Bros acquisition race.
The Warner Bros board declared Paramount’s offer as “superior” and granted Netflix four business days to either match or exceed the bid. However, Netflix declined to increase their offer, emphasizing fiscal discipline amid a changing entertainment industry landscape. Paramount’s CEO David Ellison hailed the board’s unanimous support for the bid, framing the victory as a significant step to consolidate audiovisual content globally amid challenging market fragmentation and shifting viewer habits.
Industry analysts note that this high-stakes battle reflects a broader trend of consolidation within the entertainment sector as companies seek to merge cinema, television, and streaming to better compete with giants like Disney and tech platforms like YouTube. The merger faces scrutiny from U.S. regulatory authorities who monitor the competitive and cultural implications of such transactions.
This development coincided with Ted Sarandos’ visit to the White House for meetings, though no encounter with President Donald Trump was scheduled. Sarandos expressed confidence that merging Warner Bros with streaming services such as HBO Max could have created the world’s largest streaming platform, benefiting Hollywood production employment amid economic challenges. Nevertheless, Netflix's withdrawal underscores a strategic pivot towards content investment over costly acquisitions, maintaining its position as a formidable player in the evolving entertainment market.
This article was translated and synthesized from Spanish sources, providing English-speaking readers with local perspectives.
Source articles (4)
Source comparison
Valuation of Warner Bros.
Sources report different valuations for Warner Bros. Discovery.
amp.rtve.es
"valued the assets at approximately $72 billion"
mundiario.com
"valuing Warner at approximately $83 billion"
Why this matters: One source claims Netflix valued Warner Bros. at approximately $83 billion, while another states it was valued at around $72 billion. This discrepancy affects the understanding of the financial stakes involved in the acquisition battle.
Paramount's total offer value
Sources report different total values for Paramount's offer.
mundiario.com
"Paramount's bid exceeded $111 billion"
es.ign.com
"Paramount's offer includes $31 per share plus additional compensation for shareholders for delays, totaling around $650 million"
Why this matters: One source states Paramount's bid exceeds $111 billion, while another mentions a revised offer of $31 per share without a total valuation. This difference in reported total value could mislead readers about the scale of the acquisition.