Feb 27, 2026 11:45am IST
Paramount Skydance Set to Acquire Warner Bros. Discovery; Netflix Backs Out of Bidding War
On February 26, Netflix announced it would not match Paramount Skydance’s latest bid for Warner Bros. Discovery, clearing the path for a massive merger expected to reshape the global entertainment industry.
Netflix’s co-CEOs, Ted Sarandos and Greg Peters, confirmed the news and ended months of speculation regarding this bidding war between the two entertainment giants.
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“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” said Netflix co-CEOs after Warner Bros. Discovery shared its board’s new decision.
“However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid. Warner Bros. is a world-class organization, and we want to thank David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the WBD Board for running a fair and rigorous process. 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,” the statement added.
Paramount Skydance, which CEO David Ellison leads, valued Warner Bros. Discovery at roughly $77 billion in an all-cash deal by hiking its offer to $31 per share.
WBD called Paramount Skydance’s latest bid a “superior proposal.”
Speaking about one of the biggest deals in the history of Hollywood, Ellison said, “We are pleased WBD’s Board has unanimously affirmed the superior value of our offer,” adding that it would offer “certainty and speed to closing.”
David Zaslav, the WBD CEO, attempted to give a positive spin to the groundbreaking deal, citing Netflix co-CEOs Sarandos and Greg Peters and chief financial officer Spencer Neumann and said, “Netflix is a great company and throughout this process Ted, Greg, Spence and everyone there have been extraordinary partners to us. We wish them well in the future.”
“Once our Board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders. We are excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery and can’t wait to get started working together telling the stories that move the world,” he added.
Chair of the Warner Bros. Discovery Board of Directors, Samuel A. Di Piazza, Jr. shared his excitement about the deal. As per Variety, he quoted, “I am extremely proud of the rigorous process this Board has run over the past five and a half months that has led us to the cusp of combining these two storied companies and the excitement it will bring to audiences for many years to come.”
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