Netflix has withdrawn from the bidding race for Warner Bros. Discovery, clearing the way for Paramount Skydance to take the lead in a high-profile takeover battle.
Netflix
Netflix had earlier offered 27.75 dollars per share for Warner’s studio business and its HBO Max streaming platform, valuing those assets at about 83 billion dollars including debt.
However, Paramount Skydance later submitted a higher and final offer of 31 dollars per share for the entire Warner Bros. Discovery group. That proposal values the company at roughly 111 billion dollars including debt.
Although Warner’s board had continued to back Netflix’s earlier offer, it acknowledged that Paramount’s bid now represents a superior proposal. This marked the first sign of support for what had initially been seen as a hostile bid.
Soon after that assessment, Netflix confirmed it would not increase its offer, saying the deal was no longer financially attractive.
In a joint statement, Netflix co-chief executives Ted Sarandos and Greg Peters said the acquisition was “nice to have at the right price, not a must-have at any price.”
Despite Netflix stepping aside, the deal is not yet final. Warner’s board has not formally approved Paramount’s proposal, although its chief executive David Zaslav described the offer as one that could create tremendous value.
Any merger would still require approval from shareholders and regulators. Analysts expect competition concerns and political scrutiny to play a key role in the review process.
If completed, the merger would bring major media brands such as CNN and CBS News under one corporate structure, raising fresh debate about media consolidation in the United States.
Paramount Skydance is led by David Ellison, son of billionaire Larry Ellison, who is backing the financing of the bid.
Investors reacted quickly. Netflix shares rose 8.5 percent in after-hours trading, suggesting relief that the company avoided an expensive acquisition. Paramount shares gained 6.2 percent, while Warner Bros. Discovery shares fell nearly 2 percent to 28.80 dollars, below Paramount’s 31-dollar offer.
Analysts said Netflix’s decision reflects financial discipline rather than weakness, allowing investors to focus on its profitability and performance.
If Paramount Skydance succeeds, the combined company would unite major Hollywood franchises, including Harry Potter, Superman and Barbie from Warner, alongside Paramount titles such as Top Gun and The Godfather, as well as the Paramount+ streaming service.
For now, the bidding war appears settled. But regulatory and shareholder approvals remain the final hurdles before what could become one of the largest media mergers in recent years.
