Netflix Drops Bid for Warner Bros Discovery as Paramount Moves In

Netflix has officially stepped away from its bid to acquire Warner Bros. Discovery, clearing the path for Paramount Skydance to move forward with a takeover.

On February 26, WBD’s board accepted Paramount Skydance’s revised all cash offer of $31 per share, valuing the company at more than $108 billion.

The bid surpassed Netflix’s earlier proposal of $27.75 per share, which focused on WBD’s studio and streaming assets.

Netflix co CEOs Ted Sarandos and Greg Peters said matching the new price would no longer make financial sense.

Following the announcement, Netflix shares rose.

Paramount’s proposal reportedly includes added financial protections and coverage of the breakup fee tied to Netflix’s earlier offer.

WBD CEO David Zaslav welcomed the potential partnership.

If approved, the merger would combine major brands including HBO, CNN, Max, Star Trek, Mission Impossible, Batman and Superman under one umbrella.

The deal still requires shareholder and regulatory approval.