Paramount Outbids Netflix, Secures Warner Bros. Discovery Deal After Netflix Withdrawal
Updated (3 articles)
Board Accepts Paramount’s Higher Offer, Netflix Withdraws Warner Bros. Discovery’s board announced that Paramount’s $31‑per‑share proposal outbid Netflix’s earlier agreement, valuing the company at roughly $111 billion including debt [1]. Netflix responded within two hours, declining to raise its bid and labeling the price “no longer financially attractive” [1]. The board’s decision clears the path for Paramount to pursue the full acquisition [1].
Deal Encompasses Entire Warner Portfolio, Not Just Streaming Paramount’s bid seeks ownership of HBO Max, CNN, and Warner’s flagship franchises, contrasting Netflix’s focus on only the studio and streaming assets [1]. The comprehensive scope aims to combine legacy content with news operations under a single owner [1]. This broader target raises strategic questions about media consolidation [1].
Warner and Paramount Executives Praise Netflix Yet Favor New Offer Warner CEO David Zaslav thanked Netflix as “extraordinary partners” while expressing optimism that a Paramount‑Skydance‑Warner combination would generate “tremendous value” [1]. Paramount CEO David Ellison hailed the board’s assessment of his offer as superior [1]. Both leaders publicly endorsed the deal despite Netflix’s earlier involvement [1].
Political Backing and Antitrust Review Heighten Scrutiny Larry Ellison, a Trump‑linked ally, supports Paramount’s bid, prompting criticism from Sen. Elizabeth Warren who warns the merger could become an “antitrust disaster” and amplify political influence over outlets like CNN [1]. The U.S. Department of Justice has opened an antitrust review, while foreign sovereign‑wealth funds finance the debt‑heavy proposal [1]. The agreement includes a $7 billion termination fee and a “ticking fee” if the transaction stalls past September [1].
Netflix Warns of Job Losses and Higher Prices in Senate Hearing In a Senate hearing, Netflix argued that merging two legacy studios and news networks could lead to job cuts and increased consumer prices [1]. Warner revenue officer Bruce Campbell countered that Netflix would maintain operations and continue investing in production [1]. The debate underscores competing views on the merger’s impact on competition [1].
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Timeline
Oct 2025 – Warner Bros Discovery announces it is up for sale after receiving multiple expressions of interest, setting the stage for a bidding war among media giants [1].
Dec 5, 2025 – Warner Bros Discovery signs an agreement to sell its film studio and streaming assets to Netflix, outlining a deal that excludes its pay‑TV networks and triggers a planned spin‑off of remaining assets into an independent company [1].
Dec 8, 2025 – Paramount Skydance submits a rival all‑cash offer of $30 per share, valuing Warner Bros Discovery at about $111 billion including debt, and pledges higher upfront cash and smoother regulatory odds than Netflix [2].
Dec 8, 2025 – Netflix’s bid, valued at roughly $83 billion including debt, receives unanimous board support from both Netflix and Warner Bros Discovery, contingent on the aforementioned spin‑off of non‑streaming assets [2].
Dec 8, 2025 – David Ellison of Paramount criticizes the spin‑off plan, warning it would “hurt shareholder value” and calling it “a mistake,” while former President Donald Trump warns that Netflix’s purchase could raise competition concerns [2].
Dec 16‑17, 2025 – Warner Bros Discovery’s board urges shareholders to reject Paramount’s offer, recommends accepting Netflix’s proposal as “in shareholders’ best interests,” and notes that Paramount’s bid arrives after Netflix’s deal was announced [1].
Dec 16‑17, 2025 – Netflix emphasizes its clearer funding structure and lower regulatory risk, and welcomes Warner’s recommendation, while Paramount, backed by the Ellison family, launches a new full‑company offer that includes CBS, MTV and Showtime [1].
Feb 26‑27, 2026 – Paramount’s $31‑per‑share proposal beats Netflix’s prior agreement; Netflix walks away, calling the price “no longer financially attractive” and declining to raise its bid [3].
Feb 27, 2026 – Warner CEO David Zaslav thanks Netflix as “extraordinary partners” but praises Paramount’s “superior value,” and Paramount CEO David Ellison hails the board’s assessment of his offer as delivering “tremendous value” [3].
Feb 27, 2026 – The U.S. Department of Justice opens an antitrust review; shareholders must still approve the deal, and a $7 billion termination fee plus a “ticking fee” will apply if the transaction stalls past September [3].
Feb 27, 2026 – Senate hearings feature Netflix warning that a full Warner‑Paramount merger could cause job losses and higher prices, while Warner revenue officer Bruce Campbell counters that Netflix would preserve operations and invest in production [3].