Paramount Tops Netflix in Warner Bros. Discovery Sale After Netflix Walks Away
Paramount Skydance outbid Netflix for Warner Bros. Discovery after Netflix declined to raise its offer, prompting regulatory reviews and industry concern about consolidation and CNN's future.
Business InsiderNetflix CEO Ted Sarandos says he bailed on WBD because of the deal's price, not because of Donald Trump
NPRParamount outbids Netflix to acquire Warner Bros. Discovery for $111 billion
New York PostThe faces behind Paramount’s Warner Bros. Discovery-takeover victory
TechCrunchWhy did Netflix back down from its deal to acquire Warner Bros.? | TechCrunch
Overview
Paramount Skydance outbid Netflix to acquire Warner Bros. Discovery in a transaction valued at roughly $101 to $111 billion, reports said.
Netflix co-CEO Ted Sarandos said Netflix withdrew from the bidding because it would not raise its price and that politics did not influence the decision.
California Attorney General Rob Bonta said his office is reviewing the merger's potential impacts, and a coalition of 11 state attorneys general urged the Department of Justice to examine the transaction.
Netflix had offered $82.7 billion for Warner Bros. Discovery's studios and streaming assets, company filings show.
The transaction still faces U.S., European and California reviews, and Paramount Skydance is set to appear before an antitrust subcommittee in Washington, officials said.
Analysis
Center-leaning sources frame the story as a dramatic retreat by Netflix, using evaluative language ("stunned," "backed down") and prioritized Bloomberg reporting and the Trump meeting. They highlight Sarandos' quoted line and employee fears, emphasizing political pressure and financial discipline; these choices steer readers toward a narrative of concession rather than neutral deal reporting.
FAQ
Paramount will acquire 100% of WBD for $31 per share in cash, plus a ticking fee, valuing WBD at $81 billion in equity value and $110 billion in enterprise value[1].
Paramount expects the acquisition will yield over $6 billion in synergies driven by technology integration (such as migrating to a single enterprise resource planning system and consolidating streaming technology stacks), corporate-wide efficiencies including procurement savings, optimizing the combined real estate footprint, and streamlining operational efficiencies[1].
The bidding process began in late 2025 with multiple bids from Paramount Skydance, Netflix, and Comcast. On December 4, 2025, WBD entered a merger agreement with Netflix valued at $82.7 billion. However, in December 2025, Paramount Skydance launched a rival all-cash tender offer starting at $30 per share and continued revising its proposal. On February 26, 2026, WBD's board determined that Paramount's revised $110.9 billion offer was superior to Netflix's agreement, and Netflix declined to match it and withdrew[3].
The Paramount Skydance-WBD deal is expected to close between September and December 2026[3].
The transaction still faces reviews from U.S., European, and California regulators. The California Attorney General's office is reviewing the merger's potential impacts, a coalition of 11 state attorneys general urged the Department of Justice to examine the transaction, and Paramount Skydance is set to appear before an antitrust subcommittee in Washington[3].
