Netflix has withdrawn from negotiations to acquire Warner Bros. Discovery’s studio and streaming assets, effectively clearing the path for Paramount Global and Skydance Media to pursue a deal, according to announcements made Thursday, February 26, 2026.
The decision by Netflix, communicated in a letter to shareholders, followed Paramount’s submission of a revised bid valued at $31 per share in cash for HBO, the Warner Bros. Studios in Burbank and WBD’s cable television channels, including CNN and HGTV. This offer also includes $45.7 billion in equity personally guaranteed by Oracle co-founder Larry Ellison, according to a report from USA Today.
Netflix CEOs Ted Sarandos and Greg Peters stated that whereas their initial transaction “would have created shareholder value with a clear path to regulatory approval,” matching Paramount’s latest offer rendered the deal “no longer financially attractive.” They offered to purchase the assets at $27.75 a share.
The move marks a significant shift in the ongoing battle for control of Warner Bros. Discovery, and positions Paramount as the frontrunner to acquire a substantial portion of the media giant. The New York Times described the development as a “stunning” outcome in the corporate contest.
Warner Bros. Discovery’s board determined that Paramount’s offer was superior to Netflix’s, prompting the latter to exit the bidding process. Ancora, an investment firm, released a statement expressing satisfaction with the board’s decision, stating they were “thrilled to have shined a light on need for WBD board to pursue a larger, more certain deal with Paramount,” as reported by marketscreener.com.
Sarandos and Peters thanked Warner Bros. Discovery CEO David Zaslav and his team for conducting a “fair and rigorous process.” They expressed their belief that Netflix “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.”
As of Friday, February 27, 2026, Warner Bros. Discovery has not issued a further statement regarding the timeline for finalizing a deal with Paramount and Skydance.
