Netflix has opted not to increase its offer to acquire Warner Bros. Discovery (WBD) after WBD’s board determined that Paramount Skydance submitted a “superior” proposal.
“The deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid,” Netflix said in a statement, bringing a dramatic corporate standoff to a close.
The decision significantly advances Paramount’s effort to take control of WBD and its portfolio of assets, Warner Bros., HBO, and dozens of TV networks. While the transaction still faces months of regulatory scrutiny, Paramount now stands in a leading position to complete the acquisition.
Board Favors Paramount’s Latest Offer
The withdrawal came roughly an hour after WBD’s board said Paramount’s revised takeover proposal was superior to Netflix’s existing agreement to acquire WBD’s studio and streaming assets. Paramount’s latest bid values WBD at $31 per share, up from an earlier $30-per-share offer.
Paramount’s CEO, David Ellison, sweetened the deal with several concessions, including a $7 billion regulatory termination fee and a “ticking fee” payable to shareholders of $0.25 per share per quarter beginning after September 30, 2026, which would continue until the transaction is completed. The company also agreed to key terms sought by WBD leadership.
WBD had previously rebuffed Paramount’s overtures and questioned its financial capacity to complete such a large-scale transaction. After WBD initially signed a deal with Netflix in December 2025, Paramount escalated its efforts with a hostile takeover bid.
Last week, Netflix granted WBD a seven-day waiver to negotiate with Paramount to solicit what WBD characterized as Paramount’s “best and final” offer.
Investor Reaction
Netflix’s withdrawal appeared to calm concerns among its shareholders. The company’s stock rose 9% in after-hours trading, suggesting relief that the streaming giant would not enter a potentially costly bidding escalation. By declining to match Paramount’s price, Netflix signaled that it believed the rival offer overvalued WBD.
For WBD shareholders, however, the bidding war has delivered substantial gains. CEO David Zaslav said Thursday that the competitive process led to eight price increases and produced a 63% rise in value compared to the first offer received in September. WBD’s stock price more than doubled during the months-long contest.
“Once our Board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders,” Zaslav said. “We are excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery and can’t wait to get started working together telling the stories that move the world.”
Featured image: AaronP/Bauer-Griffin/Getty Images
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