Netflix withdrew its proposal to acquire Warner Bros Discovery after refusing to top a higher offer from Paramount Skydance, clearing the path for Paramount’s roughly $111bn takeover bid. The move hands control of Warner Bros’ film studio and media networks to Paramount—potentially reshaping the media landscape—though the deal still faces scrutiny from the California Attorney General, the US Department of Justice and European regulators.
Paramount set for $111bn Warner Bros takeover after Netflix drops bid Image source, Getty Images By Danielle Kaye , Business reporter and Nardine Saad , Reporting from Los Angeles, California Published 26 February 2026 Updated 27 February 2026 Netflix has backed away from its proposal to buy Warner Bros Discovery, clearing the way for Paramount Skydance to win a months-long battle for one of Hollywood's most storied studios in a deal worth around $111bn (£82.2bn). Warner Bros, which put itself up for sale last year, on Thursday said Paramount's latest bid was "superior" to the one from Netflix, which in turn refused to raise its offer. Netflix executives say they have declined to match Paramount's bid as "the deal is no longer financially attractive" at that price. The buyer would gain control of the iconic studio along with its films and media networks - a takeover that could significantly reshape the media landscape. Last December, Warner Bros agreed to a takeover offer from Netflix for some of its assets, in a deal worth roughly $82bn (£61bn) including debt. Paramount then made a rival proposal, which was rebuffed by Warner Bros, but an increased offer was made earlier this week, boosted by $1 per share. "The transaction we negotiated would have created shareholder value with a clear path to regulatory approval," Netflix co-chief executives Ted Sarandos and Greg Peters said in a statement. "However, we've always been disciplined." "This transaction was always a 'nice to have' at the right price, not a 'must have' at any price," the Netflix executives added. The announcement came just hours after Sarandos had visited the White House on Thursday. It caps off a dramatic months-long saga that - if approved by regulators - is likely to reshape Hollywood. But California Attorney General Rob Bonta said later on Thursday that the potential merger "is not a done deal". "These two Hollywood titans have not cleared regulatory scrutiny - the California Department of Justice has an open investigation, and we intend to be vigorous in our review," he wrote in a social media post. Bonta had said earlier this month that his office would review any deal involving Warner Bros as the entertainment industry represents a "critical sector" for California's economy. Paramount would also need approval from the US Department of Justice as well as European regulators. How did Paramount beat Netflix to Warner Bros? Published 27 February 'A nightmare' - The battle over Warner Bros is turning Hollywood upside down Published 14 December 2025 <div data-block="text" class="ssrcss-
Curated by Taleb Kabbara · Source: www.bbc.co.uk
Netflix, Warner Bros, Paramount Skydance, HBO Max, CNN, Food Network, Nickelodeon, CBS, Comedy Central, Larry Ellison, Jared Kushner, Affinity Partners, Federal Communications Commission, California Department of Justice, Office of the California Attorney General, US Department of Justice, European regulators, CBS News, Getty Images, CBS News .
Netflix: Netflix is a global streaming platform and media company that proposed to buy Warner Bros Discovery but backed away from its proposal after declining to match Paramount's higher bid.
Warner Bros: Warner Bros is a storied Hollywood studio that put itself up for sale and is the acquisition target in competing bids from Paramount Skydance and Netflix.
Paramount Skydance: Paramount Skydance is a media company that made a rival and ultimately superior takeover bid to acquire Warner Bros for around $111bn.
HBO Max: HBO Max is a streaming service owned by Warner Bros that would be folded into Paramount's portfolio if Paramount's deal is approved.
CNN: CNN is a major US news network owned by Warner Bros that could be impacted by the Paramount-Warner Bros deal and was cited as a brand that might be sold or face scrutiny.
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