Netflix withdraws its acquisition offer for Warner Bros. Discovery

In December 2025, the video streaming service Netflix signed an agreement to acquire Warner Bros. Discovery's film and television production business and the streaming business behind HBO and HBO Max. Netflix was competing with Paramount Skydance for this acquisition, but it has now been revealed that Netflix has abandoned the acquisition agreement.

Netflix Declines to Raise Offer for Warner Bros. - About Netflix
https://about.netflix.com/en/news/netflix-declines-to-raise-offer-for-warner-bros

Netflix walks away from its deal to buy Warner Bros. after Paramount came back with a better offer | The Verge
https://www.theverge.com/streaming/885753/netflix-exit-warner-bros-discovery-deal-paramount

Netflix drops bid to buy HBO, Warner Bros. Discovery - 9to5Mac
https://9to5mac.com/2026/02/26/netflix-drops-bid-to-buy-warner-bros-discovery/

In December 2025, Netflix signed a deal to acquire Warner Bros. Discovery's film and television production business and its streaming business, which includes HBO and HBO Max.

Netflix signs final deal to acquire Warner Bros. - GIGAZINE

However, Paramount Skydance has offered to acquire Warner Bros. Discovery for a price higher than Netflix's asking price.

Paramount launches hostile takeover of Warner Bros. Discovery, all businesses together worth approximately 17 trillion yen - GIGAZINE

Warner Bros. Discovery had rejected a hostile takeover bid from Paramount Skydance, and Netflix had offered to revise the acquisition price and make an all-cash payment to thwart the hostile takeover.

Netflix to pay Warner Bros. all in cash to thwart Paramount's hostile takeover - GIGAZINE

Netflix and Paramount Skydance continued to improve their acquisition proposals, with Netflix ultimately offering $83 billion (approximately 12.9 trillion yen). However, on February 26, 2026 local time, Netflix announced that it was withdrawing from the acquisition agreement. Netflix co-CEOs Ted Sarandos and Greg Peters explained that they were 'rejecting the same offer' in response to Paramount Skydance's new acquisition proposal.

Netflix explained its intention to withdraw from the acquisition, saying, 'The transaction Netflix negotiated had a clear path to regulatory approval and would create shareholder value. However, we have always been disciplined, and we have determined that a price comparable to Paramount Skydance's latest proposal is no longer financially attractive, and we are therefore declining to participate in Paramount Skydance's proposal.'

He added, 'We would have had stronger control of Warner Bros.' iconic brand and we believe the transaction would have strengthened the entertainment industry and preserved and created more production jobs in America. However, while this deal was a good deal at the right price, it was not a 'must-do' at any price.'

Warner Bros. Discovery had agreed to acquire Netflix in December 2025, but David Ellison's Paramount Skydance put a hold on the deal by making a hostile takeover bid to acquire the entire Warner Bros. Discovery business, not just a portion of it. After numerous takeover bids and lawsuits, Warner Bros. Discovery finally gave Paramount Skydance one last chance to submit its 'best and final offer.'

Warner Bros. Discovery has deemed Paramount Skydance's all-cash offer of $31 per share to be a 'superior' proposal, which would require Paramount Skydance to pay a $7 billion regulatory termination fee if the Warner Bros. Discovery deal were not finalized, as well as a $2.87 billion termination fee for terminating its agreement with Netflix.