Netflix Bows Out, Clearing Path for Paramount Skydance's $111B Warner Bros. Deal
In a dramatic conclusion to a high-stakes corporate battle, Netflix has formally withdrawn from the bidding war for Warner Bros. Discovery (WBD), paving the way for Paramount Skydance to acquire the storied studio in a landmark deal valued at around $111 billion. The shift occurred after WBD's leadership determined that a revised, sweetened offer from David Ellison's Paramount Skydance constituted a 'superior proposal' to the existing agreement with Netflix. According to reports, Netflix co-CEOs Ted Sarandos and Greg Peters, after having a contractual window to respond, informed Warner leadership that the company would not match the new terms, citing a commitment to financial discipline. The news was met with immediate approval on Wall Street, where Netflix's stock surged by as much as 8-12% following the announcement. Investors signaled strong support for the streamer's decision to avoid a costly acquisition battle, interpreting the move as a prudent allocation of capital. Meanwhile, the mood inside Warner Bros. was described as a 'gut punch' by one executive, with employees reportedly holding out hope that Netflix would counteroffer and prevent the takeover by Paramount Skydance. The acquisition saga unfolds against a tense geopolitical backdrop, as sources indicate regional leaders warned the U.S. administration that escalating conflict with Iran could drive oil prices above $100 a barrel. This has fueled concerns about a potential shock to global gas markets and contributed to forecasts of a strengthening U.S. dollar. The deal, one of the largest in Hollywood history, now positions Paramount Skydance to control a massive new media empire, realigning the competitive landscape of the entertainment industry.
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Sources
Netflix shares surged over 12% ... that Paramount Skydance Corp’s latest proposal constitutes a superior offer under the terms of its existing merger agreement with Netflix. Netflix has jumped 12.3% as of 13:12 ET. The news saw brokerage Raymond James cut Warner Bros ...
According to Variety, the final ... proposal.” · Netflix had a contractual window to respond but chose not to match the revised terms. Instead, co-CEOs Ted Sarandos and Greg Peters informed Warner leadership that the company would step away. “We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest ...
Paramount Skydance Poised to Acquire Warner Bros. Discovery After Netflix Bows Out of Bidding War
Netflix on Thursday afternoon formally declined to increase its offer for Warner Bros. Discovery after WBD declared Paramount Skydance’s latest bid a “superior proposal” to the agreement it already had in hand with Netflix.
Live Update At 10:01:57 EST: On Friday, February 27, 2026 Netflix Inc. stock [NASDAQ: NFLX] is trending up by 8.34%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below. AngloGold Ashanti Surges Amid Booming Financials and Positive Rating ...
“It’s obviously very upsetting to employees,” said one exec inside Warner Bros., who described the news as a “gut punch.” Employees at the studio were said to be holding out hope that Netflix would come up with a new bid to out-maneuver Paramount Skydance‘s “superior proposal,” and ...
Netflix has backed away from its proposal to buy Warner Bros Discovery, clearing the way for Paramount Skydance to win a months-long battle for one of Hollywood's most storied studios in a deal worth around $111bn (£82.2bn).
News Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources. ... Getting your Trinity Audio player ready... ... Netflix Inc. just won by losing. Shares of the streaming industry leader rose as much as 12% in New York Friday after the company announced it was dropping out of the fight to buy Warner Bros...
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