Warner Bros. Discovery is set to be acquired in its entirety by Paramount Skydance.
Warner Bros. Discovery is set to be acquired in its entirety by Paramount Skydance
The reported upcoming deal follows a whirlwind afternoon on Friday (27.02.26) in the wake of Netflix abruptly dropping out of the bidding, despite having reached an agreement in December to acquire most of WBD.
The extraordinary reversal unfolded after the Warner Bros. Discovery board declared Paramount Skydance’s latest $31-per-share offer a “superior proposal” to the deal already agreed with Netflix.
Netflix then had four business days – giving it until 4 March – to submit a revised bid.
Earlier that same day, Netflix co-chief executive Ted Sarandos was in Washington DC lobbying officials in Donald Trump’s administration in support of the merger agreement, as Paramount’s improved $111 billion all-cash offer for the entirety of WBD – including its linear cable channels – intensified the contest.
In a joint statement issued less than two hours after Warner Bros. Discovery revealed its board’s decision, Sarandos and co-chief executive officer of Netflix Greg Peters said: “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval.
“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, so we are declining to match the Paramount Skydance bid.
“Warner Bros. is a world-class organization, and we want to thank David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the WBD Board for running a fair and rigorous process.
“We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the U.S., but this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
The statement continued: “Netflix’s business is healthy, strong and growing organically, powered by our slate and best-in-class streaming service.
“This year, we’ll invest approximately $20 billion in quality films and series and will expand our entertaining offering. “Consistent with our capital allocation policy, we’ll also resume our share repurchase program.
“We will continue to do what we’ve done for more than 20 years as a public company: delight our members, profitably grow our business, and drive long-term shareholder value.”
The now-abandoned Netflix deal – valued at approximately $82.7 billion, or $27.75 per share – included Warner Bros. and HBO Max but excluded the company’s cable networks.
Paramount’s earlier $30-per-share offer for the full company had been rejected, but when it raised the bid to $31 per share – about $111 billion in total – the Warner Bros. Discovery board entered formal negotiations during the seven-day period ending on the night of 23 February.
David Zaslav, chief executive of Warner Bros. Discovery, said: “Netflix is a great company and throughout this process Ted, Greg, Spence and everyone there have been extraordinary partners to us.
“We wish them well in the future.
“Once our Board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders. “We are excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery and can’t wait to get started working together telling the stories that move the world.”
Samuel A. Di Piazza Jr., chair of the Warner Bros. Discovery board, added: “I am extremely proud of the rigorous process this Board has run over the past five and a half months that has led us to the cusp of combining these two storied companies and the excitement it will bring to audiences for many years to come.”
But U.S. Senator Elizabeth Warren criticised the proposed merger, saying: “A Paramount Skydance-Warner Bros. merger is an antitrust disaster threatening higher prices and fewer choices for American families.
“What did Trump officials tell the Netflix CEO today at the White House?
“A handful of Trump-aligned billionaires are trying to seize control of what you watch and charge you whatever price they want.
“With the cloud of corruption looming over Trump’s Department of Justice, it’ll be up to the American people to speak up and state attorneys general to enforce the law.”