Netflix has backed out of the bidding war to acquire Warner Bros., paving the way for Paramount to make a deal with their “superior proposal.”
Back in December 2025, it was reported that Netflix had placed the winning bid, acquiring Warner Bros. Film Studios, HBO, and HBO Max in a massive deal valued at an estimated $82.7 billion.
Then, Paramount came through with a “superior” offer this week and it is valued at approximately $111 billion, according to Variety.
Warner Bros. Discovery told Netflix they have until the end of day on March 4 to come up with a better offer. Netflix is now saying no.
Keep reading to find out more…
Read the below statement:
Netflix, Inc. today announced that it has declined to raise its offer for Warner Bros.
Netflix had earlier received notice from Warner Bros. Discovery (WBD) that its Board of Directors has determined Paramount Skydance’s (PSKY) latest proposal constitutes a “Superior Proposal” under the terms of WBD’s existing merger agreement with Netflix.
Netflix issued the following statement in response from co-CEOs Ted Sarandos and Greg Peters:
The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, 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.
Warner Bros. is a world-class organization, and we want to thank David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the WBD Board for running a fair and rigorous process. We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the U.S. But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.
Netflix’s business is healthy, strong and growing organically, powered by our slate and best-in-class streaming service. This year, we’ll invest approximately $20 billion in quality films and series and will expand our entertaining offering. Consistent with our capital allocation policy, we’ll also resume our share repurchase program.
We will continue to do what we’ve done for more than 20 years as a public company: delight our members, profitably grow our business, and drive long-term shareholder value.
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