Paramount Outbids Netflix to Acquire Warner Bros. Discovery in $82.7 Billion Deal

On February 26, 2026, Netflix officially withdrew its bid to acquire Warner Bros. Discovery (WBD), conceding to a higher offer from Paramount Skydance. Paramount's proposal valued WBD at approximately $82.7 billion, offering $31 per share, which the Warner Bros. board deemed superior. Netflix's co-CEOs, Ted Sarandos and Greg Peters, explained that while the deal could have created shareholder value and likely would have cleared regulatory hurdles, matching Paramount's offer was not financially viable. Netflix, which had planned to invest $20 billion in original content by 2026, emphasized that acquiring WBD was a desirable but not imperative asset at the right price.

Paramount's acquisition includes a vast portfolio encompassing HBO studios, streaming services, video game divisions, and TV networks like CNN and TBS. It also secures key franchises such as DC Comics, Harry Potter, Matrix, and Dune. The deal carries the potential to reshape Hollywood's studio landscape, with Paramount aiming for a full takeover of WBD's assets. However, concerns linger over possible job cuts and media plurality, especially given the Ellison family's political ties and Paramount’s influence over media content.

Paramount's offer additionally features $7 billion in breakup fees and covers $2.8 billion owed to Netflix from a previous failed agreement. The acquisition awaits approval from U.S. and European regulators, which may delay completion. Netflix’s stock rose 10% following the announcement, signaling investor confidence despite its withdrawal. This development marks a pivotal moment in the competitive media industry, highlighting the financial and political dynamics shaping entertainment's future.