Netflix withdraws Warner Bros bid, calls deal ‘no longer financially attractive’
TOI GLOBAL | Feb 27, 2026, 20:01 IST
Netflix Ends Warner Bros. Bid After Paramount Raises Offer
Netflix has withdrawn from its bid to acquire Warner Bros. Discovery after Paramount’s higher $31-per-share offer. Citing financial discipline and regulatory scrutiny, Netflix executives said the deal was no longer attractive. Paramount’s aggressive push underscores the strategic value of Warner Bros.’ film, television and streaming assets.
Netflix has officially exited the bidding war for Warner Bros. Discovery, saying it will not match a higher offer from Paramount Global and its Skydance-backed consortium.
In a letter to shareholders dated Feb. 26, Netflix co-CEOs Ted Sarandos and Greg Peters confirmed the company declined to raise its final offer, describing the acquisition as “no longer financially attractive” at the price required to compete.
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” the executives said in a joint statement. “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.”
Netflix had offered $27.75 per share for Warner Bros. Discovery’s HBO, HBO Max, and the Warner Bros. film and television studios in Burbank. The broader proposal valued key entertainment assets but did not include a higher premium to secure the deal once bidding intensified.
Paramount’s final offer, submitted Feb. 23, was reportedly $31 per share in cash for HBO, the Burbank studios and cable networks including CNN and HGTV. The package also included $45.7 billion in equity personally guaranteed by Oracle co-founder Larry Ellison, strengthening Paramount’s financial position in the negotiations.Faced with a four-day window to counter, Netflix chose to step aside.
The initial $72 billion agreement Netflix explored triggered immediate scrutiny from lawmakers concerned about consolidation in the media and streaming industries. Sen. Mike Lee, who leads the Senate’s antitrust subcommittee, warned the deal should “send alarm to antitrust enforcers.” Sen. Elizabeth Warren described the potential merger as “an anti-monopoly nightmare.”
Even Donald Trump weighed in publicly, noting that such a large increase in market share “could be a problem,” leaving the ultimate economic analysis to regulators and experts.
Netflix had argued that combining forces with Warner Bros. Discovery would eliminate costly competition between HBO Max and Netflix, generate efficiencies and expand content offerings for its more than 300 million global subscribers.
Media and tech merger consultant Derek Reisfield suggested Paramount was willing to pay what he described as a “nosebleed price” because it strategically needed the assets more than Netflix did.
Owning Warner Bros. would significantly bolster Paramount’s content library, global distribution footprint, subscriber data capabilities and advertising power. The move could cement Paramount’s standing as a top-tier competitor alongside Disney in the evolving streaming wars.
For Netflix, executives emphasized that the deal was a “nice to have” at the right price not a necessity at any cost. With regulatory scrutiny mounting and the bidding escalating, the company opted to preserve capital and refocus on organic growth.
The withdrawal marks the end of one of the most closely watched media takeover battles of 2026 and leaves Paramount poised to reshape the entertainment landscape.
In a letter to shareholders dated Feb. 26, Netflix co-CEOs Ted Sarandos and Greg Peters confirmed the company declined to raise its final offer, describing the acquisition as “no longer financially attractive” at the price required to compete.
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” the executives said in a joint statement. “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.”
Netflix had offered $27.75 per share for Warner Bros. Discovery’s HBO, HBO Max, and the Warner Bros. film and television studios in Burbank. The broader proposal valued key entertainment assets but did not include a higher premium to secure the deal once bidding intensified.
Paramount’s final offer, submitted Feb. 23, was reportedly $31 per share in cash for HBO, the Burbank studios and cable networks including CNN and HGTV. The package also included $45.7 billion in equity personally guaranteed by Oracle co-founder Larry Ellison, strengthening Paramount’s financial position in the negotiations.Faced with a four-day window to counter, Netflix chose to step aside.
The initial $72 billion agreement Netflix explored triggered immediate scrutiny from lawmakers concerned about consolidation in the media and streaming industries. Sen. Mike Lee, who leads the Senate’s antitrust subcommittee, warned the deal should “send alarm to antitrust enforcers.” Sen. Elizabeth Warren described the potential merger as “an anti-monopoly nightmare.”
Even Donald Trump weighed in publicly, noting that such a large increase in market share “could be a problem,” leaving the ultimate economic analysis to regulators and experts.
Netflix had argued that combining forces with Warner Bros. Discovery would eliminate costly competition between HBO Max and Netflix, generate efficiencies and expand content offerings for its more than 300 million global subscribers.
Media and tech merger consultant Derek Reisfield suggested Paramount was willing to pay what he described as a “nosebleed price” because it strategically needed the assets more than Netflix did.
Owning Warner Bros. would significantly bolster Paramount’s content library, global distribution footprint, subscriber data capabilities and advertising power. The move could cement Paramount’s standing as a top-tier competitor alongside Disney in the evolving streaming wars.
For Netflix, executives emphasized that the deal was a “nice to have” at the right price not a necessity at any cost. With regulatory scrutiny mounting and the bidding escalating, the company opted to preserve capital and refocus on organic growth.
The withdrawal marks the end of one of the most closely watched media takeover battles of 2026 and leaves Paramount poised to reshape the entertainment landscape.