Netflix No Longer Likely to Be DC’s New Owners After Shocking Update

by

The Warner Bros. Pictures Netflix sale situation has received a shocking update.

Warner Bros. Discovery, the parent company of DC Studios, is potentially being sold. Netflix has been the frontrunner to acquire its movies and shows, but Paramount, led by David Ellison, is still actively pursuing a deal.

What is the update on the Warner Bros. Disvoery and Netflix sale?

Variety reports that Paramount Pictures is now leading the race to buy Warner Bros. Pictures. They’ve submitted a better offer, and Netflix has four days to decide if they’ll counter it.

Warner Bros. Discovery (WBD) announced on Thursday that it believes a competing offer from Paramount Skydance is better than its current deal with Netflix. This triggers a four-business-day window for Netflix to potentially modify its agreement with WBD to regain the upper hand. After this period, if WBD’s board, with advice from financial and legal experts, still believes the Paramount Skydance offer is superior, WBD has the right to end the Netflix deal.

Netflix has four days to submit a revised plan to try and save the agreement. Ted Sarandos, a co-CEO at Netflix, is reportedly in Washington, D.C. today, attempting to persuade officials from the Trump administration to support the deal. The proposed partnership between Netflix and Warner Bros. Discovery has drawn significant criticism in the current, highly divided political climate. The Justice Department is now conducting a thorough review of Netflix’s business practices, which could lead to unprecedented levels of scrutiny for the streaming service.

PSKY has offered to buy each share of WBD for $31.00 in cash. The deal also includes a small, ongoing payment of $0.25 per share starting after September 30, 2026. If the deal falls through due to regulatory issues, PSKY would pay a $7 billion fee. They would also cover the $2.8 billion fee WBD would owe to Netflix for canceling their existing agreement. Additionally, Larry Ellison and a related trust have committed to provide extra funding if needed to satisfy PSKY’s lenders, and the agreement defines a significant negative change in WBD’s business in a way that excludes the performance of its traditional television networks.

This news is still developing, meaning more details could come at a later date.

Read More

2026-02-27 01:06