Netflix has withdrawn its reported $83 billion bid for Warner Bros. Discovery (WBD) after months of competing for the company, clearing the path for a rival offer backed by media executive David Ellison.
In a joint statement released Thursday, Feb. 26, 2026, Netflix co-CEOs Ted Sarandos and Greg Peters said the company would not increase its bid to counter a competing offer from Paramount Skydance. While praising WBD as a “world-class organization,” the executives said the deal was “no longer financially attractive.”
“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.,” the co-CEOs said. “But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
Inside The Netflix And Paramount Fight For WBD
As AFROTECH™ previously reported, Netflix reached an agreement in December 2025 to acquire a significant portion of WBD’s business. The deal, valued at $83 billion, included the premium cable network HBO, Warner Bros. movie studio, and CNN’s 24-hour news network.
That same month, Paramount — which had repeatedly positioned itself as the more aggressive bidder — entered the race with a competing offer of roughly $108 billion.
On Dec. 17, 2025, WBD rejected Paramount’s proposal, saying Netflix’s bid “represents superior, more certain value for our shareholders,” AFROTECH™ noted.
Paramount responded by filing a lawsuit, asking a Delaware court to compel WBD to disclose details of its Netflix deal. Paramount was given a Monday, Feb. 23, 2026, deadline to submit its best and final offer for the media conglomerate, per Variety. In response, it offered $111 billion, The New York Times reports.
On Thursday, Feb. 26, 2026, WBD declared Paramount’s bid to be “superior proposal,” according to a news release, giving Netflix four business days to decide whether to counter. Netflix ultimately chose not to.
“We are pleased WBD’s Board has unanimously affirmed the superior value of our offer, which delivers to WBD shareholders superior value, certainty, and speed to closing,” Ellison said in a statement Thursday, before Netflix formally withdrew.
Paramount will cover the $2.8 billion termination fee that WBD will owe Netflix for exiting the existing merger agreement, the news release notes.
For its part, WBD President and CEO David Zaslav praised Netflix as “a great company” and extended his best wishes to its executives.
“Once our Board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders,” Zaslav added in a statement, according to Reuters. “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.”
What’s Next For Netflix?
As for Netflix, Sarandos and Peters said the company will continue investing heavily in content. Specifically, the streaming giant plans to spend approximately $20 billion on films and series in 2026 as it expands its global entertainment offerings, per the Feb. 26 news release.
“Netflix’s business is healthy, strong, and growing organically, powered by our slate and best-in-class streaming service,” the co-CEOs said in the release.
“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,” they added.
