Netflix has exited the bidding for Warner Bros. Discovery’s studio and streaming assets, clearing the way for Paramount Skydance’s higher offer to move toward a final agreement. Paramount’s latest proposal has been deemed superior to the previously signed 82.7 billion dollar deal Warner Bros. Discovery had reached with Netflix in December 2025, and Netflix has chosen not to raise its price to match.
Warner Bros. Discovery’s board determined that Paramount’s revised offer, which lifted the cash price to 31 dollars per share from 30 dollars and addressed concerns around financing guarantees and other deal terms, was more attractive overall. Paramount and Warner Bros. Discovery are now working on a definitive agreement that will still need approval from Warner Bros. Discovery shareholders as well as regulatory clearance in the United States and other territories. Netflix had four business days to respond but opted to withdraw immediately rather than escalate the bidding.
In a joint statement, Netflix co‑CEOs Ted Sarandos and Greg Peters said the transaction they negotiated with Warner Bros. Discovery would have created value for shareholders and had, in their view, a clear regulatory path. They stressed that Netflix intends to remain disciplined on valuation and described the Warner Bros. deal as a “nice to have” at the right price instead of a “must have” at any price. The executives thanked Warner Bros. Discovery leadership for what they called a fair and rigorous process and said Netflix believed it would have been a strong steward of Warner Bros.’ brands and supportive of production jobs in the United States.
Netflix also emphasized that its underlying streaming business remains healthy and continues to grow organically, driven by its film and series lineup. The company reiterated plans to invest about 20 billion dollars in content this year and to resume its share repurchase program under its existing capital allocation strategy. Investors appeared to welcome the decision not to chase a higher price, with Netflix’s stock rising by more than 10 percent after the announcement.
The battle for Warner Bros. Discovery’s assets has unfolded over roughly six months. After closing the Skydance‑Paramount merger in August 2025, Paramount CEO David Ellison quickly turned to Warner Bros. Discovery and began making a series of bids that were initially rejected. Those rejections led Warner Bros. Discovery’s board to open a formal auction process that attracted bids from Paramount, Netflix, Comcast, and an undisclosed fourth party. Warner Bros. Discovery first chose Netflix, marking a notable shift for a company usually focused on organic growth rather than acquisitions, before Paramount continued to raise its offer and ultimately secured the board’s support with its latest proposal.
If the Paramount Skydance deal is completed, the combined company is expected to control a large group of channels and streaming platforms. The assets anticipated to fall under Paramount’s umbrella include TNT, CBS, CNN, MTV, Turner Classic Movies (TCM), Showtime, Comedy Central, Adult Swim, Cartoon Network, Nickelodeon, DC Studios, HBO and HBO Max, along with the existing Paramount+ service. Together, these outlets would give Paramount Skydance a broad presence in broadcast, cable, and streaming across news, sports, scripted entertainment, unscripted series, and children’s programming.
The proposed combination would also gather a wide range of film and television franchises under one corporate roof. Highlighted properties include Star Trek, Transformers, Mission: Impossible, A Quiet Place, and Teenage Mutant Ninja Turtles, as well as Warner‑originated franchises such as Harry Potter, DC Comics and DC Studios titles, Game of Thrones, The Conjuring, Mortal Kombat, Looney Tunes, Tom & Jerry, and classics like Citizen Kane. Family and animation brands such as SpongeBob SquarePants, Dora the Explorer, and Avatar: The Last Airbender, along with distribution rights for upcoming releases like Dune 3 and the Minecraft film, would further expand the combined film and series library.
From here, Paramount Skydance and Warner Bros. Discovery will focus on finalizing their agreement and moving through shareholder votes and regulatory reviews in multiple jurisdictions. Attention across the industry is now on how regulators and stakeholders respond to the scale of the proposed combination, given the number of networks and franchises involved. For Netflix, the outcome reinforces a strategy centered on original content investment and organic subscriber growth, while for Paramount Skydance and Warner Bros. Discovery, the next phase will determine how and when this large consolidation of assets can proceed.