In a major shake-up for the entertainment industry, Netflix has officially withdrawn its bid to acquire Warner Bros. Discovery (WBD), stating the deal is no longer financially attractive. This decision, announced on Thursday, February 26, 2026, paves the way for Paramount Skydance to become the leading contender for the media conglomerate.

Netflix co-CEOs Ted Sarandos and Greg Peters confirmed their company would not raise its offer after the WBD Board of Directors deemed Paramount Skydance's latest proposal a "Superior Proposal." While acknowledging they would have been "strong stewards of Warner Bros.' iconic brands," Sarandos and Peters emphasized that the transaction was "always a 'nice to have' at the right price, not a 'must have' at any price." Netflix's previous agreement, announced December 5, 2025, valued WBD's streaming and studios division at $82.7 billion.

Paramount Skydance's revised offer is a substantial $31 per share in cash for 100% of Warner Bros. Discovery, escalating the bidding war to over $110.9 billion. This aggressive proposal includes a $7 billion regulatory termination fee and a "ticking fee" of $0.25 per share per quarter starting after September 30, 2026. Significantly, Paramount Skydance also committed to cover the $2.8 billion termination fee WBD would owe Netflix for breaking their prior agreement. The Warner Bros. Discovery board formally determined Paramount's bid superior on February 26, 2026, initiating a four-business-day window for Netflix to counter, which it ultimately declined.

This development comes as Warner Bros. Discovery reported a $252 million quarterly loss on February 26, 2026, highlighting the financial pressures in the media landscape. Paramount Global, led by CEO David Ellison, has been aggressively pursuing WBD, aiming to acquire its entire portfolio, including coveted brands like HBO, CNN, and the DC Universe. The path for Paramount now shifts to navigating the complexities of integrating such a massive acquisition, with regulatory hurdles seemingly cleared after the expiration of the Hart-Scott-Rodino Antitrust Improvements Act waiting period on February 19, 2026.