Netflix Drops Out of Warner Bros. Race, Paramount Left Standing

Netflix is officially out of the running for Warner Bros. Discovery’s studio, streaming and related assets. After Paramount Skydance came in with a higher offer of $31 per share (all-cash, total ~$111 billion), topping Netflix’s $27.75 bid (~$83 billion including debt), Netflix chose not to increase its price. Basically, the numbers went up, and Netflix decided that was high enough for them.

The WBD board felt Paramount’s proposal was the stronger one financially. Under the merger, Netflix had a limited window of four days to respond with a revised offer. It declined. So the bidding phase, at least between these two, is done.

Paramount’s offer also includes a $7 billion termination fee (one of the largest ever), and covers the breakup costs tied to the prior agreement. These deals are not just about headline price, so that matters. Who carries the risk if regulators push back or the deal collapses for legal reasons?

The deal is not final, though. Paramount’s bid still requires shareholder approval and regulatory clearance in multiple jurisdictions. Media consolidation at this scale tends to attract scrutiny, especially when major studios and streaming platforms are involved.

Investors seemed to welcome Netflix’s restraint. Its shares ticked upward after news broke that it would not escalate the bidding. Sometimes the market prefers discipline over expansion. In this case, Netflix looked at the price, did the math, and said not today thanks.

So where things stand: Paramount is the remaining bidder, the board has called its offer superior, and the deal now moves into the approval phase.