Netflix drops $83 billion bid for Warner Bros. Discovery, paving way for Paramount Skydance deal

February 27, 2026

TL;DR

Netflix will not match Paramount Skydance's bid for Warner Bros. Discovery.
Netflix's initial agreement was to buy part of Warner Bros. Discovery for $82.7 billion ($27.75 a share).
Paramount Skydance raised its all-cash offer to $31 a share.
Warner Bros. Discovery's board deemed Paramount's offer a "superior proposal."
Netflix cited financial unattractiveness and a clear path to regulatory approval as reasons for their withdrawal.
Netflix co-CEOs Ted Sarandos and Greg Peters released a statement regarding the decision.
Sarandos met with Trump administration officials, including Chief of Staff Susie Wiles and Attorney General Pam Bondi, regarding antitrust concerns.
The Justice Department indicated a comprehensive antitrust investigation into the Netflix-Warner Bros. Discovery deal.
Warner Bros. Discovery owns various streaming platforms, film studios, and cable channels like CNN and HBO.
The Paramount Skydance and Warner Bros. Discovery merger will require federal antitrust approval.
Paramount Skydance believes the merger will benefit consumers and the entertainment industry.
Concerns have been raised by industry groups and lawmakers about the potential reduction in competition.
Paramount Skydance included a $7 billion termination fee in its offer if the acquisition fails due to regulatory issues.

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