Paramount’s $31‑Share Offer Wins Warner Bros Discovery Board After Netflix Walks Away
Updated (77 articles)
Netflix’s Withdrawal Ends Bidding War
On 26 February 2026 Netflix announced it would not raise its $27.75‑per‑share offer for Warner Bros Discovery, calling the price “no longer financially attractive” and exiting the contest [4][5][6][8][9][10]. The decision removed the primary obstacle for Paramount Skydance, allowing its revised proposal to become the leading bid [3][7]. Netflix co‑CEOs Ted Sarandos and Greg Peters emphasized disciplined spending as the reason for the pull‑back [3][5].
Paramount Raises Offer to $31 Per Share
Paramount Skydance submitted a cash bid of $31 per share on 26 February, adding a $7 billion regulatory termination fee and an accelerated “ticking‑fee” of $0.25 per share for each quarter the deal stalls past year‑end [3][7][8][9][10][11]. Including Warner’s debt, the transaction values the company at roughly $110‑$111 billion [1][7][11]. The higher price and added protections were presented as offering better shareholder value and stronger antitrust odds [7][11].
Board Declares Paramount Proposal Superior
Warner Bros Discovery’s board labeled the Paramount offer a “company superior proposal” and recommended it over the Netflix agreement, though it did not formally withdraw the latter [3][8][9]. The board’s endorsement triggered a roughly 10 % rise in Warner’s share price after hours and a 9 % gain for Netflix shares [5]. CEO David Zaslav praised the expected “tremendous value” from the merger, while Paramount CEO David Ellison hailed the board’s decision as a validation of his bid [4][5].
Deal Would Consolidate Major Studios and News Assets
If completed, Paramount would acquire Warner’s full portfolio—HBO Max, CNN, Discovery, DC Studios, the Harry Potter franchise, and legacy film libraries—merging them with Paramount Pictures, CBS, and Paramount+ [3][6][8][9][10]. Analysts project $6 billion in cost‑saving synergies but warn the integration could trigger thousands of layoffs across the combined companies [2][4][6]. The merger would reshape the U.S. streaming landscape, positioning Paramount+ as a direct rival to Netflix, Amazon, and Disney+ [2][5].
Regulatory, Political, and Financial Scrutiny Intensifies
U.S. Department of Justice antitrust review and a California Attorney General investigation remain pending, with concerns about media concentration and political influence [3][4][7][10]. The bid is heavily financed by billionaire Larry Ellison’s backing of Skydance and sovereign‑wealth fund debt, while former President Donald Trump and Saudi investors have been reported as involved [1][2][4][10]. Critics, including Sen. Elizabeth Warren, label the transaction an “antitrust disaster,” emphasizing the need for shareholder and regulator approval before closing [4][5][11].
Sources
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1.
Le Monde: Paramount Skydance poised to acquire Warner Bros Discovery after Netflix walks away: Details David Ellison’s leadership, Larry Ellison’s financing, and political connections, noting Oscar‑nominated films boost WBD’s value .
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2.
CNN: Ellison’s Skydance Wins Paramount‑Warner Bros. Discovery Deal Amid Netflix Rivalry: Highlights the $6 billion synergy estimate, potential layoffs, and involvement of Trump and Saudi investors .
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3.
BBC: Netflix pulls Warner Bros bid, paving way for Paramount’s $31‑share offer: Reports Netflix’s “not financially attractive” comment, regulatory uncertainty, and the $7 bn break‑up guarantee .
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4.
AP: Netflix Walks Away as Paramount Offers Higher Bid for Warner Bros. Discovery: Emphasizes the $111 billion valuation, political antitrust concerns, and Senate hearing remarks from Netflix .
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5.
CNN: Paramount Wins Warner Bros. Discovery Bid After Netflix Withdraws: Notes board’s “superior” label, share price reactions, and White House meetings involving Netflix .
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6.
Newsweek: Netflix Withdraws from Warner Bros. Deal, Leaving Paramount as Sole Bidder: Focuses on the termination and ticking fees, combined studio‑news portfolio, and foreign sovereign‑wealth financing .
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7.
Le Monde: Netflix refuses to raise bid for Warner Bros Discovery, clearing path for Paramount Skydance: Provides bid amounts, debt‑heavy financing, and upcoming shareholders’ meeting details .
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8.
WBNS: Netflix Walks Away From Warner Bros Deal, Clearing Path for Paramount: Highlights Paramount’s full‑asset pursuit, $7 bn termination fee, and board’s “superior value” comment .
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9.
King5: Netflix walks away from Warner Bros. deal, clearing path for Paramount: Mirrors WBNS coverage, stressing the ticking‑fee clause and Ellison’s board praise .
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10.
The Hindu: Netflix Refuses to Raise Warner Bid as Paramount Ups Offer to $31 per Share: Stresses antitrust review, Larry Ellison’s backing, and Trump‑related political backdrop .
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11.
The Hindu: Paramount Raises Offer for Warner Bros Discovery to Counter Netflix Bid: Reports earlier $108.4 bn offer, analyst price target of $34 per share, and Ancora Capital’s activist stance .
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12.
BBC: Netflix chief defends $27.75‑per‑share Warner Bros bid as Paramount deadline looms: Covers Netflix’s $27.75‑share proposal, Paramount’s $30‑share counter, and Sarandos’s job‑creation arguments .
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Timeline
Dec 5, 2025 – Netflix announces a $72 billion cash‑and‑stock acquisition of Warner Bros. Discovery’s studio and streaming assets at $27.75 per share, pledging to honor existing theatrical windows and saying “we will continue Warner’s theatrical release contracts”[28][23].
Dec 8, 2025 – Paramount Skydance launches a hostile all‑cash offer for Warner Bros. Discovery at $30 per share, valuing the company at $108.4 billion and bypassing the board, with CEO David Ellison touting “superior value and a quicker path to completion”[20][19].
Dec 9, 2025 – A consumer class‑action suit files against Netflix, arguing the $72 billion deal would eliminate HBO Max as a rival and give Netflix control of franchises such as Harry Potter and Game of Thrones[18].
Dec 9, 2025 – Bloomberg reports Netflix had earlier explored buying a major game publisher, including Electronic Arts, before focusing on the Warner Bros. bid[17].
Dec 10, 2025 – Tencent withdraws its $1 billion financing commitment from Paramount’s bid, citing CFIUS concerns over foreign equity in a U.S. media deal[16].
Dec 13, 2025 – Warner Bros. Discovery announces it is for sale after a $11 billion 2024 loss; Netflix’s $72 billion offer targets the studio and HBO assets, while Paramount Skydance submits a $108 billion hostile bid backed by Saudi, Abu Dhabi and Qatar sovereign funds[14][14].
Dec 13, 2025 – Analysts warn the Netflix‑Warner merger could concentrate content control, erode theatrical exhibition and limit creative diversity[15].
Dec 16, 2025 – Jared Kushner’s firm Affinity Partners ends financing support for Paramount’s bid, noting “significant changes” in investment dynamics[13].
Jan 7, 2026 – Warner Bros. Discovery’s board rejects Paramount’s leveraged‑buyout proposal, urges shareholders to back Netflix’s $72 billion deal, and highlights Paramount’s “extraordinary amount of debt financing”[12][5].
Jan 7, 2026 – Paramount adds a $5.8 billion payout guarantee and an “irrevocable personal guarantee” from Larry Ellison to shore up financing for its bid[12].
Jan 12, 2026 – Paramount sues Warner Bros. Discovery in Delaware, demanding disclosure of the Netflix deal’s valuation and threatening a proxy fight to install a Paramount‑friendly board[11].
Jan 20, 2026 – Netflix revises its proposal to an all‑cash offer of $27.75 per share, keeping the enterprise value at $82 billion and adding Discovery‑Global stock value to simplify shareholder approval[4][26].
Jan 20, 2026 – Paramount Skydance continues its rival bid, filing a lawsuit to force Warner to disclose how it values the competing offers and naming its own director slate for the upcoming shareholder meeting[26].
Feb 3, 2026 – Netflix testifies before a Senate antitrust subcommittee, with co‑CEO Ted Sarandos pledging a 45‑day theatrical window and asserting the merger “gives consumers more content for less”[3].
Feb 18, 2026 – Warner Bros. Discovery receives a seven‑day Netflix waiver to discuss Paramount’s “deficiencies,” while the board still recommends the Netflix deal and schedules a special shareholders’ meeting for Mar 20, 2026[9][9].
Feb 23, 2026 – Netflix defends its $27.75‑per‑share bid as Paramount’s deadline looms, with Sarandos arguing the transaction “adds assets and jobs” and noting Netflix has spent $6 billion on UK originals and created 50,000 jobs since 2020[2].
Feb 26, 2026 – Netflix announces it will not raise its offer, calling a higher price “no longer financially attractive,” thereby clearing the path for Paramount Skydance’s bid[8][7].
Feb 27, 2026 – Netflix formally withdraws from the Warner Bros. Discovery deal, leaving Paramount as the sole serious bidder[7].
Feb 27, 2026 – Paramount lifts its offer to $31 per share, adds a $7 billion termination fee and an accelerated “ticking‑fee” clause to offset regulatory delays[1][30].
Feb 27, 2026 – David Ellison’s Skydance wins the bidding war, positioning him to control Warner Bros. Discovery’s studios, streaming services and TV networks if shareholders and regulators approve the deal[6].
Feb 27, 2026 – Analysts note the combined Paramount‑Skydance‑Warner entity would generate $6 billion in synergies but likely trigger thousands of layoffs, and the transaction still faces U.S. DOJ and EU antitrust reviews[6].
Future (Mar 20, 2026) – Warner Bros. Discovery plans a special shareholders’ meeting to vote on the Netflix proposal, though the outcome remains uncertain amid Paramount’s superior offer[9].
Future (12–18 months after split) – The Netflix‑Warner deal (if revived) expects closure 12–18 months after Warner separates its Discovery‑Global cable assets, a process projected to take six to nine months[26][24].
Dive deeper (7 sub-stories)
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Paramount’s $31‑Share Offer Takes Lead After Netflix Walks Away
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Netflix Defends $82 B Warner Bros Acquisition, Offers All‑Cash Bid to Senate
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AP: Netflix posts solid Q4 as subscriber growth slows amid Warner Bros. Discovery bid (Jan 20)
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BBC: Hollywood takeover battle could reshape UK sports rights, TNT Sports in focus
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AP: Larry Ellison backs $40.4 billion personal guarantee in Paramount's hostile bid for Warner Bros. Discovery
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CNN: Senators Push AG Pam Bondi to Recuse from Warner Bros. Antitrust Review
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All related articles (77 articles)
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Le Monde: Paramount Skydance poised to acquire Warner Bros Discovery after Netflix walks away
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CNN: Ellison’s Skydance Wins Paramount‑Warner Bros. Discovery Deal Amid Netflix Rivalry
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BBC: Netflix pulls Warner Bros bid, paving way for Paramount’s $31‑share offer
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AP: Netflix Walks Away as Paramount Offers Higher Bid for Warner Bros. Discovery
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CNN: Paramount Wins Warner Bros. Discovery Bid After Netflix Withdraws
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Newsweek: Netflix Withdraws from Warner Bros. Deal, Leaving Paramount as Sole Bidder
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Le Monde: Netflix refuses to raise bid for Warner Bros Discovery, clearing path for Paramount Skydance
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WBNS (Columbus, OH): Netflix Walks Away From Warner Bros Deal, Clearing Path for Paramount
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King5 (Seattle, WA): Netflix walks away from Warner Bros. deal, clearing path for Paramount
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The Hindu: Netflix Refuses to Raise Warner Bid as Paramount Ups Offer to $31 per Share
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The Hindu: Paramount Raises Offer for Warner Bros Discovery to Counter Netflix Bid
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BBC: Netflix chief defends $27.75‑per‑share Warner Bros bid as Paramount deadline looms
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The Hindu: Warner Bros. Discovery Reopens Paramount Talks After Netflix Waiver
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The Hindu: Warner Bros. Discovery Restarts Paramount Talks After Netflix Waiver
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BBC: Netflix Defends $82 bn Warner Bros Deal at Senate Antitrust Hearing
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CNN: Barry Diller’s Bid for CNN Meets Firm Denial from Warner Bros. Discovery
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AP: Paramount extends $77.9B hostile bid for Warner Bros. Discovery as proxy fight looms
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AP: Netflix posts solid Q4 as subscriber growth slows amid Warner Bros. Discovery bid (Jan 20)
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BBC: Netflix moves Warner Bros bid to all-cash offer to fend off Paramount Skydance
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AP: Netflix widens all-cash bid for Warner Bros. Discovery amid Paramount challenge
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WBNS (Columbus, OH): Netflix revises Warner Bros. Discovery offer to all-cash transaction
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King5 (Seattle, WA): Netflix revises Warner Bros. Discovery bid to all-cash deal
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CNN: Netflix shifts Warner Bros. Discovery bid to all cash to deter Paramount
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CNN: Trump investments in Netflix and Warner Bros. Discovery raise ethics conflict concerns
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CNN: Paramount sues in Delaware as it pursues WBD stake amid Netflix deal
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CNN: Paramount holds $30-per-share takeover bid as WBD backs Netflix merger
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AP: Warner Bros. rejects Paramount takeover, urges shareholders to back Netflix $72 billion deal
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BBC: Warner Bros Discovery tells shareholders to reject Paramount Skydance's updated takeover bid
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CNN: Warner Bros. Discovery board urges shareholders to reject Paramount’s amended hostile bid, backing Netflix deal
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BBC: Hollywood takeover battle could reshape UK sports rights, TNT Sports in focus
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AP: Larry Ellison backs $40.4 billion personal guarantee in Paramount's hostile bid for Warner Bros. Discovery
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CNN: Paramount boosts hostile bid for Warner Bros. Discovery as Ellison guarantees $40.4 billion
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AP: Warner Bros. Discovery faces regulatory review as Netflix and Paramount push competing bids
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BBC: Warner Bros Discovery backs Netflix over Paramount Skydance bid
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CNN: Senators Push AG Pam Bondi to Recuse from Warner Bros. Antitrust Review
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CNN: Warner Bros. Discovery Rejects Paramount Offer as Netflix Deal Advances
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AP: Warner Bros. Discovery urges shareholders to back Netflix over Paramount offer
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AP: Warner Bros. Discovery faces competing $72 B Netflix offer and $78 B Paramount hostile bid
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The Hindu: Warner Bros asks investors to reject takeover bid from Paramount Skydance
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AP: Jared Kushner’s Firm Withdraws Support for Paramount’s Warner Bid
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BBC: Warner Bros Sale Sparks Hollywood Uncertainty as Netflix and Paramount Skydance Vie for Studio
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The Hindu: Netflix-Warner deal reshapes content creation and the cinema experience
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CNN: Paramount’s hostile takeover bid is one of the largest
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AP: Tencent withdraws from Paramount-Warner bid to avert national security review
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Newsweek: Netflix Nearly Bought a Major Game Studio Before $82.7B Warner Bros. Deal
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The Hindu: Netflix faces consumer class action over $72 billion Warner Bros deal
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CNN: Battle Over Warner Bros. Discovery Sale Intensifies as Paramount Elevates Bid
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BBC: Paramount Skydance makes hostile bid for Warner Bros Discovery as Netflix moves on assets
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AP: Paramount Skydance’s Bid Places CNN in Management Limbo
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Newsweek: Netflix-WBD bid escalates as Paramount counteroffers and Trump involvement
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AP: Golden Globe Nominations Highlight “One Battle After Another” and Netflix‑Warner Deal
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CNN: Trump Signals Involvement in Warner Bros. Discovery Sale
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WBNS (Columbus, OH): Paramount goes hostile in bid for Warner Bros., challenging a $72 billion offer by Netflix
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AP: Paramount goes hostile for Warner Bros. Discovery, topping Netflix with a roughly $108 billion offer
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AP: Netflix-Warner Bros. Deal Faces Antitrust Scrutiny as Paramount Launches Counteroffer
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CNN: Paramount launches all‑cash bid for Warner Bros. Discovery
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CNN: Paramount Launches Hostile Takeover Bid for Warner Bros. Discovery
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CNN: Trump’s Influence in the Netflix‑Warner Bros. Deal
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BBC: Paramount Skydance makes rival bid for Warner Brothers Discovery
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BBC: Netflix-Warner Bros. deal enters regulatory spotlight as rival bid advances
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BBC: Trump says Netflix-Warner Bros deal could be a problem
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AP: Trump says Netflix-Warner Bros. merger could be a problem due to market share
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Newsweek: Trump Reacts to Netflix Deal, Says Ted Sarandos Has Done ‘Incredible Job’
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CNN: Netflix to acquire Warner Bros. Discovery assets for $82.7B
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CNN: Netflix’s Warner Bros. bid faces antitrust and worker-impact questions
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AP: Netflix to Acquire Warner Bros. Discovery for $72 Billion
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AP: Netflix to Acquire Warner Bros. Discovery Studio for $72 B, Excluding Cable Networks
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CNN: Netflix Wins $72 B Takeover of Warner Bros., Surpassing Paramount
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CNN: Netflix to buy Warner Bros. Discovery unit in $72B deal; regulator review looms
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WBNS (Columbus, OH): Netflix to Acquire Warner Bros. Discovery for $72 B
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WBNS (Columbus, OH): Netflix to acquire Warner Bros. Discovery and HBO Max in $82.7 billion deal
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CNN: Netflix to Acquire Warner Bros. Discovery for $72 B
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King5 (Seattle, WA): Netflix to Acquire Warner Bros. Discovery’s Warner Section for $72 B
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Newsweek: Netflix to Acquire Warner Bros. Discovery for $82.7 Billion Deal
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King5 (Seattle, WA): Netflix to acquire Warner Bros. Discovery and HBO Max in $82.7 billion deal
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Newsweek: Netflix to Acquire Warner Bros Discovery for $83 Billion
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CNN: Netflix Leads Bidding War for Warner Bros. Discovery Studio and Streaming Assets
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