Netflix walks away after WBD backs Paramount Skydance’s higher bid
Feb 27th 2026
Warner Bros. Discovery's board deemed Paramount Skydance's $31 per share offer superior, prompting Netflix to abandon its $27.75 per share proposal for WBD's studio and streaming assets and leaving a Paramount takeover of the whole company as the likely next step.
- WBD's board said Paramount Skydance's $31 per share all-cash offer is superior to Netflix's $27.75 per share deal for WBD's studio and streaming assets.
- Netflix declined to raise its offer within the four business day window and withdrew from the transaction.
- Paramount's bid covers the entire Warner Bros. Discovery company, including CNN, TBS and TNT, and includes a $7 billion breakup fee plus payment of a $2.8 billion fee owed to Netflix if needed.
- WBD CEO David Zaslav said the board will vote to adopt the Paramount merger agreement and expects it to create shareholder value.
- Netflix said matching Paramount's bid would make the deal financially unattractive and that the acquisition was optional, not required.
- Market reaction was rapid: Netflix shares rose about 10 percent in after-hours trading, Paramount gained about 5 percent, and WBD shares fell about 2 percent, and Netflix had earlier granted WBD a waiver to reengage with Paramount while CEO Ted Sarandos met at the White House to discuss the potential tie-up.