Netflix has declined to match Paramount Skydance's superior $31 per share offer for Warner Bros. Discovery, clearing the path for a potential merger valued at around $111 billion. Warner Bros. Discovery CEO David Zaslav expressed well-wishes to Netflix while voicing excitement about partnering with Paramount. The decision follows a competitive auction process that began last fall amid regulatory and political scrutiny.
Warner Bros. Discovery (WBD) announced on February 26, 2026, that it views Paramount Skydance's latest bid as superior to its existing agreement with Netflix, which was signed on December 5, 2025, for $27.75 per share in cash for WBD's studio and streaming assets, totaling $82.7 billion. Paramount's offer, raised to $31 per share in cash for the entire company including linear cable channels, addresses key concerns such as increasing the regulatory breakup fee to $7 billion and reaffirming payment of the $2.8 billion termination fee to Netflix.
Netflix co-CEOs Ted Sarandos and Greg Peters stated, “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. 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.” They added that the deal was a “nice to have” at the right price, not a “must have” at any price, and highlighted Netflix's ongoing investments of approximately $20 billion in content this year.
WBD CEO David Zaslav responded positively, saying, “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.” Samuel A. Di Piazza, Jr., chair of the WBD board, praised the “rigorous process this Board has run over the past five and a half months.”
The auction process, initiated after WBD's plan to spin off its cable channels, involved bids from Paramount, Netflix, Comcast, and an unnamed bidder. Netflix had four business days to counter but opted out immediately. Netflix's stock rose nearly 10% to over $92 in after-hours trading, reflecting investor relief.
Political concerns persist, with Sen. Cory Booker (D-NJ) inviting Paramount CEO David Ellison to testify at a March 4 Senate Judiciary antitrust subcommittee hearing. Democrats, including Sen. Elizabeth Warren, have raised antitrust issues and Ellison's ties to President Donald Trump. Sarandos met with Trump administration officials in Washington, D.C., earlier that day amid Justice Department scrutiny of the original Netflix deal for potential monopoly risks.
The merger requires WBD shareholder approval on March 20 and regulatory clearance in the U.S. and abroad, potentially facing challenges due to overlaps in film, TV production, and streaming.
