Netflix has officially ended its bid for Warner Bros Discovery, declining to match Paramount Skydance’s higher offer. The decision concludes months of negotiations over a potential Discovery deal.
Paramount recently revised its proposal to acquire all Warner Bros. Discovery assets for $110 billion. Under this arrangement, Paramount would also pay Netflix a $2.8 billion breakup fee, finalizing the terms if the Discovery deal moves forward.
Netflix co-CEOs Ted Sarandos and Greg Peters said the company remained disciplined in its approach. “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive,” the executives explained.
The decision to step away highlights that the acquisition was optional for Netflix. Instead, the streaming giant plans to focus on organic growth, with a projected $20 billion investment in original content for 2026.
Warner Bros. Discovery President and CEO David Zaslav thanked Netflix for its collaboration during the process and expressed enthusiasm about merging with Paramount Skydance. Board Chair Samuel A. Di Piazza, Jr. noted that the five-and-a-half-month review prepared both companies for long-term value creation.
Netflix had initially agreed in December to acquire HBO, HBO Max, and Warner Bros. Discovery’s television and film studios while spinning off other cable networks. Paramount’s offer, however, covers the entire company, making it more attractive to the board.
The bidding war intensified in recent weeks, but Netflix ultimately decided that increasing its offer for the Discovery deal would not align with its financial strategy. The Warner Bros. Discovery board is expected to vote on adopting Paramount’s merger agreement on March 20.
This marks a pivotal moment in the entertainment industry, as Netflix continues its growth strategy independently, while Paramount prepares to consolidate Warner Bros. Discovery’s assets under its umbrella.
In other news read more about: Netflix Explores Bid for Warner Bros Discovery, Hires Bank to Evaluate Deal
