Warner Bros. Discovery takeover shifts to Paramount after Netflix exit

Netflix has withdrawn from the bidding war for Warner Bros. Discovery, clearing the path for Paramount Global and Skydance to take control of the media giant.

The streaming company confirmed Thursday that it would not raise its offer after Warner Bros. Discovery’s board deemed Paramount Skydance’s revised bid a “Superior Proposal” under the terms of Netflix’s existing merger agreement. Co-CEOs Ted Sarandos and Greg Peters said they were “declining to match” the updated offer, signaling that the deal was no longer financially attractive.

The decision likely paves the way for Paramount to acquire the storied Hollywood studio and its portfolio of assets, including CNN, in a move that could significantly reshape the US media landscape.

Without a counteroffer from Netflix, Warner Bros. Discovery’s board is now free to terminate its agreement with the streaming giant and move forward with Paramount’s proposal.

Paramount’s sweetened bid, submitted earlier this week, raised its purchase price to $31.00 per share in cash — a $1 increase from its previous offer, valuing the company at approximately $108 billion. The company also offered a $7 billion regulatory termination fee if the deal fails due to antitrust or other regulatory hurdles and agreed to cover the $2.8 billion breakup fee Warner Bros. Discovery would owe Netflix.

The high-stakes bidding battle has drawn political attention as well, with US President Donald Trump previously indicating he would weigh in on the outcome.

If finalized, the takeover would mark one of the most significant consolidations in modern media, placing Warner Bros. Discovery’s film studios and television networks under Paramount’s expanding umbrella.