Netflix declines to match Paramount Skydance’s $111 billion bid for Warner Bros. Discovery, ending the bidding war and boosting its shares amid regulatory and valuation concerns.
Netflix has withdrawn from the race to acquire Warner Bros. Discovery (WBD), paving the way for Paramount Skydance to secure the $111 billion Hollywood studio deal. The streaming giant declined to match Paramount’s revised $31-per-share all-cash offer, calling it no longer financially attractive after WBD’s board deemed the bid superior.
The saga began when WBD put itself up for sale last year, sparking a bidding war. Netflix initially secured a deal for WBD’s studios and streaming assets at $27.75 per share, valuing it at around $83 billion. Paramount Skydance, backed by David Ellison and Larry Ellison, countered with a $30-per-share offer for the entire company, later upping it to $31 amid a hostile tender to shareholders. Netflix co-CEOs Ted Sarandos and Greg Peters noted the original transaction offered shareholder value and regulatory clarity but stepped back to maintain fiscal discipline.
WBD confirmed Paramount’s proposal as superior, triggering Netflix’s right to match within days, which it ultimately passed on. The move sent Netflix shares up as much as 13% in after-hours trading, signaling investor relief over avoiding an overpriced acquisition. Paramount’s win now faces potential antitrust hurdles from regulators scrutinizing the massive merger of two media titans.
This outcome reshapes Hollywood’s consolidation landscape, combining Warner’s HBO, CNN, and film studios with Paramount’s CBS and Skydance animation under one roof.
