Netflix Walks Away From $83 Billion Warner Bros. Deal

Investors and Republicans opposed the merger, leading Netflix to abandon the acquisition.

Published on Feb. 27, 2026

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Netflix co-CEO Ted Sarandos visited the White House on Thursday to discuss the company's bid for Warner Bros. Discovery, but just hours later, Netflix walked away from the $83 billion deal. Investors had signaled their distaste for the acquisition, and Republicans were also opposed to the merger, leading Netflix to ultimately abandon the transaction.

Why it matters

The collapse of the Netflix-Warner Bros. deal means that Larry and David Ellison's Paramount will likely end up owning all of WBD, including the movie/TV studio, HBO, and the company's various TV networks like CNN. This will make the Ellison family a major media titan, with control over a vast portfolio of entertainment and news assets.

The details

Netflix co-CEO Ted Sarandos visited the White House on Thursday to discuss the company's bid for Warner Bros. Discovery. However, just hours later, Netflix announced that it was walking away from the $83 billion transaction. Investors had been signaling their opposition to the deal for weeks, pushing down Netflix's stock. Additionally, Republicans were also against the merger, accusing Netflix of pushing 'woke content' on its subscribers.

  • On Thursday afternoon, Netflix co-CEO Ted Sarandos visited the White House to discuss the company's bid for Warner Bros.
  • Just hours after Sarandos' White House visit, Netflix announced that it was walking away from the $83 billion deal.

The players

Ted Sarandos

The co-CEO of Netflix who visited the White House to discuss the company's bid for Warner Bros. Discovery.

Larry Ellison

The co-founder of Oracle, whose family's company Paramount is likely to end up owning all of Warner Bros. Discovery, including the movie/TV studio, HBO, and various TV networks.

David Ellison

The co-founder of Oracle, whose family's company Paramount is likely to end up owning all of Warner Bros. Discovery, including the movie/TV studio, HBO, and various TV networks.

Donald Trump

The former U.S. president, who was seen as someone Netflix needed to win over in order to get the merger approved, but who ultimately did not publicly favor Netflix's bid over Paramount's.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

What’s next

Assuming Paramount's deal for Warner Bros. Discovery goes through, it will mean the Ellison family will become major media titans, controlling a vast portfolio of entertainment and news assets.

The takeaway

The collapse of the Netflix-Warner Bros. deal highlights the power of investors and political forces in shaping the media landscape. It also demonstrates the growing influence of the Ellison family, who are poised to become dominant players in the industry through Paramount's acquisition of WBD.