Netflix Backs Out of WBD Deal, Cites Paramount's Raised Offer

The streaming giant has declined to match Paramount's increased bid for the legacy media company.

Published on Feb. 27, 2026

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Netflix has walked away from its deal to acquire Warner Bros. Discovery's TV, film, and streaming assets. The company cited Paramount's raised offer for the entire WBD company as the reason it is no longer pursuing the transaction, saying the deal is 'no longer financially attractive' at the price they'd have to match.

Why it matters

The fight for control of WBD's valuable content library and production capabilities has been closely watched, as the potential consolidation of major entertainment companies raises antitrust concerns. Paramount's successful bid to acquire WBD will create an even larger media powerhouse, further reshaping the industry landscape.

The details

Netflix had a deal in place to acquire WBD's assets, which would have allowed the streaming giant to expand into theatrical film distribution and content licensing. However, Paramount launched a competing bid, offering $31 per share in cash plus additional fees. WBD deemed Paramount's offer a 'Company Superior Proposal', giving Netflix four days to counter, which the company ultimately declined to do.

  • On February 26, 2026, WBD disclosed Paramount's increased offer.
  • Netflix had four days to make a counter bid, but chose to withdraw from the deal altogether.

The players

Netflix

The leading global streaming entertainment service, which had been in negotiations to acquire WBD's assets.

Warner Bros. Discovery (WBD)

The media conglomerate formed by the merger of Warner Bros. and Discovery Inc., which was seeking to sell its TV, film, and streaming assets.

Paramount

The media company that launched a successful competing bid to acquire the entire WBD company.

Ted Sarandos

Co-CEO of Netflix.

Greg Peters

Co-CEO of Netflix.

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What they’re saying

“the deal is no longer financially attractive”

— Ted Sarandos and Greg Peters, Co-CEOs of Netflix (Netflix press release)

“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.”

— David Zaslav, CEO of Warner Bros. Discovery (WBD statement)

What’s next

The Paramount-WBD deal will now need to undergo regulatory review in the United States and abroad before it can be finalized. A Senate hearing is also scheduled to examine the transaction and any potential antitrust concerns.

The takeaway

The battle for control of WBD's valuable content assets highlights the ongoing consolidation in the media industry, as major players seek to gain scale and diversify their offerings. The outcome will have significant implications for the future competitive landscape and consumer choice.