Maya Robertson
A high-stakes bidding contest for Warner Bros. Discovery has concluded with Paramount Skydance emerging as the winning bidder after Netflix declined to raise its offer.
Warner Bros. Discovery said Paramount Skydance’s revised proposal of $31 per share constituted a “superior proposal” under the terms of its existing merger agreement with Netflix, triggering a four-business-day window for Netflix to respond. On Thursday, Netflix confirmed it would not increase its $82.7 billion all-cash bid and would instead withdraw from the process.
In a statement, Netflix co-CEOs Ted Sarandos and Greg Peters said the transaction was no longer financially attractive at the revised price, describing the acquisition as a strategic opportunity but not essential at any cost.
The new agreement values Warner Bros. Discovery at approximately $111 billion and includes the assumption of roughly $33 billion in debt. Paramount Skydance will pay a $2.8 billion termination fee to unwind Warner’s prior deal with Netflix.
The acquisition hands Paramount control of Warner Bros.’ film and television studios, premium network HBO, the company’s streaming platforms, its games division, and a portfolio of linear networks including CNN, TBS, TNT, Discovery and HGTV.
Paramount itself was acquired last year by Skydance Media in a deal backed by Larry Ellison, the executive chair of Oracle and father of Skydance founder David Ellison. Financing for the Warner transaction includes a $57.5 billion debt commitment from Bank of America Merrill Lynch, Citi and Apollo Global Management, alongside tens of billions in equity support tied to the Ellison family.
Netflix’s withdrawal alters the strategic narrative surrounding the transaction. A successful Netflix bid would have marked a consolidation between a technology-driven streaming platform and a legacy Hollywood studio. Instead, the outcome represents a merger between established entertainment groups, further concentrating assets within traditional media ownership structures.
Netflix had originally announced its intent to acquire Warner Bros. Discovery in December, arguing that the combination would strengthen its content library and production capabilities. However, executives signaled the company would remain disciplined on valuation.
The company said it will continue investing approximately $20 billion this year in films and series and will resume its share repurchase program. Netflix shares rose in after-hours trading following the announcement, while Paramount shares also moved higher.
Warner Bros. Discovery’s games division — which includes studios such as Rocksteady, NetherRealm and TT Games — becomes part of Paramount’s expanding portfolio. The long-term strategy for those assets remains unclear. Netflix executives previously indicated they had not factored significant value from the games segment into their acquisition model.
The transaction also folds Warner’s news and entertainment networks into Paramount’s holdings, adding to scrutiny surrounding media ownership concentration. Paramount already controls CBS and other major entertainment brands.
The deal remains subject to regulatory approval. Given the size of the transaction and the consolidation of film studios, streaming platforms and broadcast networks under a single ownership structure, antitrust scrutiny is expected.
With Netflix stepping aside, Paramount Skydance now stands poised to reshape the U.S. media landscape — uniting some of Hollywood’s most established brands under one ownership group, pending approval.
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