Netflix Will Not Match Paramount Skydance’s $111 Billion Offer to Buy Warner Bros. Discovery

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Netflix has decided to end its attempt to buy Warner Bros. Discovery. The company stated it won’t increase its offer, as Paramount Skydance has proposed a better deal. Netflix’s co-CEOs, Ted Sarandos and Greg Peters, explained that matching Paramount’s offer would no longer make the acquisition financially worthwhile.

In a joint statement, the CEOs explained that while their original deal would have benefited shareholders and likely been approved by regulators, they’ve decided not to compete with the higher offer from Paramount Skydance. They stated that maintaining financial responsibility is a priority, and the current price to win the deal is no longer worthwhile.

Even though Netflix decided not to pursue the deal, they complimented Warner Bros. Discovery’s leaders – including David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer, and the board – for running a thorough and honest process. Netflix clarified that acquiring the company would have been a bonus if the cost was reasonable, but not essential at any price.

Netflix announced it will invest approximately $20 billion in new movies and TV shows to give subscribers more to watch. The company also plans to start buying back its own stock.

Originally, Netflix and Warner Bros. Discovery had a deal worth about $82.7 billion, including $72 billion in equity. However, instead of buying all of Warner Bros. Discovery, Netflix was focused on acquiring its movie and TV production studios, as well as the rights to content from HBO Max and HBO.

Notably, the agreement didn’t discuss the game studios owned by Warner Bros. Discovery. David Zaslav previously explained in December that these gaming companies were considered a small part of the overall deal. However, he also expressed enthusiasm about working with WB Games, stating there’s a clear potential for future collaboration.

Peters explained that they’re revisiting their initial assessment of the deal and the valuation model they used. While the company had been doing good work in gaming, it wasn’t initially factored into the deal’s value because it seemed small in the bigger picture. Now, they’re very excited about properties like Hogwarts Legacy, which have performed well and could be a valuable addition to what they’re offering. They recognize the strong studios and talented people within the company and see a real opportunity. However, they want to clarify that this potential value hasn’t yet been included in their deal model.

Paramount Skydance will pay a $2.8 billion fee to allow Warner Bros. Discovery to end its agreement with Netflix. The total value of the proposed deal is approximately $111 billion, with Warner Bros. Discovery shares valued at around $31 each in cash. This deal encompasses the entire Warner Bros. Discovery company, but Netflix wasn’t interested in acquiring its traditional cable networks.

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2026-02-27 14:41