Netflix withdrew from its $83 billion agreement to acquire Warner Bros Discovery after refusing to match Paramount Skydance’s higher $111 billion offer.
After multiple revised bids, Paramount Skydance’s $31-per-share offer won over WBD, clearing the path for one of the largest media mergers in history.
the deal would bring HBO Max, CNN, Nickelodeon, and Harry Potter under the same umbrella as Paramount’s CBS and its streaming platform.
After months of back-and-forth negotiations, the messy corporate battle to acquire Warner Bros Discovery (WBD) has come to an end as Netflix has stepped aside.
Streaming giant Netflix on Thursday suddenly withdrew from the race after rival bidder Paramount Skydance increased its offer. The move clears the way for Paramount Skydance to take control of WBD in a $111 billion deal, including debt.
3 February 2026
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Netflix had earlier signed an agreement worth $83 billion, including assumed debt to acquire the Hollywood studio. However, Paramount Skydance kept coming back with improved offers. Its latest bid proposed paying $31 per share, valuing the entire company at about $111 billion, along with other revised terms.
The streaming giant was given four business days to respond with a counteroffer. At the same time, Netflix allowed WBD a seven-day window to continue talks with Paramount Skydance, the discussions that ultimately led to the higher offer and Netflix's exit.
In a statement, Netflix said, "The transaction we negotiated would have created shareholder value with a clear path to regulatory approval." However, the company made it clear it would not match the revised price.
"We’ve always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid," it added.
WBD CEO David Zaslav thanked Netflix's leadership, including co-CEOs Ted Sarandos and Greg Peters, as well as CFO Spencer Neumann.
"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," Zaslav said.
The company believes that the new agreement with Paramount Skydance will generate greater value for its shareholders.
If the deal goes through, it would bring a wide range of well-known brands under one umbrella. That includes HBO Max, blockbuster franchises like Harry Potter, and major media outlets such as CNN and Nickelodeon, alongside Paramount's CBS network and its own streaming platform.
WBD further said, "Once our board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders. We are excited about the potential of a combined Paramount Skydance and WBD and can't wait to get started working together telling the stories that move the world."
With Netflix officially out of the picture, Paramount Skydance now appears set to reshape the global entertainment landscape with one of the biggest media deals in history.
