Netflix announced on Thursday that it declined to raise its bid for Warner Bros. Discovery to match Paramount Skydance’s.
The streaming giant explained in a statement that “at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive.”
Earlier in the day, WBD’s Board of Directors said it determined Paramount Skydance’s latest offer was a “Superior Proposal.” Paramount, on Tuesday, raised its bid to buy WBD to $31 per share.
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“We are pleased WBD’s board has unanimously affirmed the superior value of our offer, which delivers to WBD shareholders superior value, certainty and speed to closing,” Paramount CEO David Ellison said Thursday.
Hours later, Netflix issued its statement saying that while it believes it would have been “strong stewards of Warner Bros.’ iconic brands,” and that a merger would have strengthened the entertainment industry, the transaction was considered “‘nice to have’ at the right price, not a ‘must have’ at any price.”
Back-and-forth bids
Back in December, WBD agreed to sell its streaming and studio assets to Netflix for $27.75 per share after winning a bidding war with Paramount. Just days later, Paramount launched a hostile bid to acquire WBD, though the latter’s board raised concerns about the structure of that proposal and whether it was fully backed by billionaire Larry Ellison, David Ellison’s father.
Paramount filed an amended bid at the end of 2025, including a personal guarantee from Ellison offering $30 per share, while signaling it was not its “best and final” offer. Then came Tuesday’s announcement that Paramount was increasing its offer to $31 a share.
Any transaction needs federal regulatory approval. While Paramount executives say merging is good for consumers and the entertainment industry, trade groups argue such a takeover would only consolidate power in an industry monopolized by a few major players, according to The Associated Press.
Included in Paramount’s latest bid is a $7 billion breakup fee if the merger doesn’t get approved at the federal level. It also agreed to pay a $2.8 billion breakup fee that WBD owes Netflix.
