OAN Staff Katherine Mosack
11:20 AM – Friday, February 27, 2026
Netflix has officially withdrawn from its attempt to acquire Warner Bros. Discovery (WBD). This decision effectively ends a months-long bidding war, leaving the door wide open for Paramount Skydance to finalize a merger.
The streaming company made a statement about the decision on Thursday, noting that the deal was “no longer financially attractive” once Warner’s board asked it to match Paramount’s bid.
“We believe we 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. But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” Netflix stated.
Netflix only intended to acquire a portion of Warner Bros. property, whereas Paramount, backed by tech billionaire Larry Ellison and led by his son, David Ellison, wants to acquire all of its operations.
Paramount recently sweetened its bid by $1.00 per share, shifting to a $31 per share cash offer over its previous $30 proposal. To de-risk the merger, the company also committed to a $7 billion regulatory termination fee and an increased “ticking fee,” which guarantees shareholders an additional 25 cents per share for every quarter the deal remains delayed beyond the end of September.
While Netflix walked away, the company maintained that it remains a “disciplined” organization. In a follow-up statement, leadership assured stakeholders that the streaming giant will “continue to thrive” without the Warner Bros. acquisition, opting instead to reinvest that capital into its own organic product pipeline.
“Netflix’s business is healthy, strong and growing organically, powered by our slate and best-in-class streaming service,” it said. “This year, we’ll invest approximately $20 billion in quality films and series and will expand our entertainment offering.”
Warner Bros. recognized Paramount’s offer as one of “superior value” this week. If it’s approved by regulators, Paramount will absorb HBO Max’s streaming customers and catalogue into its portfolio. It would also take ownership of CNN, putting the news network under the same roof as its competitor, CBS News.
Other properties under the Warner Bros. umbrella include Adult Swim, Animal Planet, Cartoon Network, Castle Rock Entertainment, Cinemax, DC Entertainment, Fandango Media, Food Network, Golf Digest magazine, HGTV, MLB Network, TLC, True Crime News, TruTV and more.
Despite the Ellison family’s close ties to President Donald Trump, the president previously clarified that the Department of Justice (DOJ) would independently manage the regulatory approval process.
Paramount’s bid for Warner Bros. Discovery follows closely on the heels of its merger with Skydance, the production powerhouse founded by David Ellison. Skydance — known for its work on major franchises like “Mission: Impossible,” “Star Trek,” and “Terminator” — had been a long-standing co-production partner of Paramount Pictures since 2009.
That relationship culminated in an $8 billion merger with Paramount Global, which officially closed this past August.
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