Netflix drops bid for Warner Bros, clearing way for Paramount takeover

Netflix has withdrawn its bid to acquire Warner Bros Discovery, paving the way for Paramount Skydance to potentially take over the studio. Warner Bros deemed Paramount's offer "superior" and Netflix declined to increase its bid, citing financial reasons. The acquisition, if approved by regulators, would significantly reshape the media landscape by giving Paramount control of Warner Bros' film and media networks. While Paramount has increased its purchase proposal, the deal still requires regulatory approval from the California Department of Justice, the US Department of Justice, and European regulators. The potential merger has raised concerns, particularly regarding the future of CNN, which has been a frequent target of criticism.

Paramount Skydance, led by David Ellison, is set to acquire Warner Bros. Discovery after Netflix withdrew its takeover bid. Netflix stated that matching Paramount's offer was no longer financially viable. The deal will place media properties like CNN, Nickelodeon, and HBO under the control of the Ellison family, headed by Oracle's Larry Ellison. The Warner Bros. board had previously deemed Paramount's offer a "Superior Proposal." The acquisition concludes a major media bidding war, consolidating a vast array of media assets under Paramount Skydance's ownership.

Netflix has withdrawn its offer to acquire Warner Bros Discovery (WBD), deeming Paramount Skydance's revised bid superior. Paramount's offer of $31 per share, a $7 billion regulatory termination fee, and quarterly "ticking fees" proved too costly for Netflix to match. Netflix stated that acquiring WBD was a "nice to have" but not a necessity at any price. This decision clears the path for Paramount Skydance, led by David Ellison, to potentially acquire WBD, including CNN. WBD had scheduled a shareholder vote for March 20 regarding the Netflix merger. Netflix's decision follows meetings with Trump administration officials, as the deal was expected to face regulatory scrutiny.

Warner Bros. Discovery (WBD) has deemed Paramount's takeover bid superior to Netflix's offer, potentially reshaping Hollywood's media landscape. Paramount, owned by Skydance, is offering $31 per share for the entire company, including networks like CNN, while Netflix's bid of $27.75 per share was only for WBD's studio and streaming business. Netflix declined to raise its offer, deeming a deal at the required price "no longer financially attractive." WBD's board has given Netflix four days to match or revise Paramount's proposal, though WBD maintains Netflix's bid remains on the table. Paramount's CEO expressed pleasure at WBD's board's affirmation of their offer's superior value. A Paramount takeover would combine CBS and CNN under one roof.

Warner Bros. Discovery (WBD) is evaluating a revised takeover offer from Paramount Skydance while still recommending Netflix's bid to shareholders. Paramount's new offer follows a previous $77.9 billion hostile all-cash bid made directly to shareholders after WBD announced its deal with Netflix in December 2025. Netflix is proposing to acquire only Warner's studio and streaming business for $72 billion in cash. The potential acquisition of WBD by either Paramount or Netflix would significantly reshape the media landscape, potentially bringing properties like HBO Max and CNN under new ownership. If Warner Bros. board changes course and deems Paramount’s latest offer superior, Netflix will be able to revise its bid.

Donald Trump has publicly pressured Netflix to remove Susan Rice, a former Obama and Biden administration official, from its board of directors, threatening unspecified "consequences." This intervention comes amidst a corporate battle between Netflix and Paramount Skydance to acquire Warner Bros Discovery (WBD). Trump accused Rice, a Democratic foreign policy expert, of lacking talent and being a "political hack," questioning her compensation and role at Netflix. Rice rejoined Netflix's board in 2023 and sits on the nominating and governance committee. Trump's comments follow Rice's recent podcast appearance where she suggested holding corporations loyal to Trump accountable. The deadline for Paramount Skydance to submit a final offer to compete with Netflix's bid for WBD is approaching.