Netflix has withdrawn from the bidding war for Warner Bros., declining to match the offer presented by Paramount Skydance, the company announced Thursday, February 27, 2026.
Netflix is stepping back from a potential acquisition of Warner Bros. Discovery, choosing not to counter a higher bid from Paramount Skydance. The move concludes a period of speculation about the future of the entertainment giant and its potential expansion. Co-CEOs Ted Sarandos and Greg Peters explained the decision in a statement, asserting that the deal “is no longer financially attractive.” They emphasized that acquiring Warner Bros. Was always viewed as a desirable opportunity, but only at a reasonable price point. “It was always considered a ‘nice to have’ at the right price, not a ‘must-have’ at any cost,” the executives said. The latest offer from Paramount Skydance reportedly reached $31 per share, with additional incentives including a quarterly payment of $0.25 per share beginning September 30, 2026, and a $7 billion regulatory break-up fee. Paramount also agreed to cover the $2.8 billion termination fee Warner Bros. Would owe Netflix if the previous agreement were canceled. Following the announcement, Netflix stock saw a jump of over 10% in after-hours trading. The company plans to receive compensation from Paramount should the deal go through. Paramount CEO David Ellison stated that the Warner Bros. Discovery board unanimously supported their offer, citing its increased certainty and faster closing timeline. Sarandos and Peters affirmed Netflix’s commitment to its existing strategy, emphasizing continued investment in original content. “This year, we will invest approximately $20 billion in quality films and series,” they stated, also announcing the reinstatement of the company’s stock repurchase program. The decision underscores Netflix’s focus on organic growth and maintaining financial discipline in a rapidly evolving media landscape.
