Business · Media
Netflix Walks Away From Warner Bros. Bidding, Clearing Way for Paramount
Netflix called the deal “no longer financially attractive” rather than match Paramount’s $31-a-share offer; regulatory approval and a shareholder vote remain.
Netflix said it will not raise its offer for Warner Bros. Discovery, calling a deal at Paramount Skydance’s latest terms “no longer financially attractive,” clearing the way for Paramount to win the months-long contest, CBS News, NBC News, Reuters and Al Jazeera reported. Paramount’s revised bid is $31 a share, up from $30, and Warner Bros. Discovery’s board called it “superior,” NBC reported. CBS News, Reuters and Al Jazeera put Netflix’s own offer at $27.75 a share.
Netflix shares rose more than 10 percent on Friday, Al Jazeera reported, and Reuters said they rose nearly 14 percent. Both reports noted that the shares had lost more than 18 percent since Netflix announced its deal on Dec. 5. Paramount’s shares also jumped by double digits, according to both outlets, though they gave different figures.
Paramount’s offer values Warner Bros. Discovery at roughly $110 billion including debt, CBS News, NBC, Reuters and Al Jazeera reported. Reuters and Al Jazeera, citing LSEG estimates, said that is roughly 13 times Warner’s expected earnings before interest, taxes, depreciation and amortization this year. Netflix’s deal covered only part of the company, CBS News and NBC News reported; NBC and Al Jazeera said it covered the streaming service, HBO and the film studio.
Paramount sweetened its terms. It said it would pay a $7 billion fee if regulators block the deal, CBS News, NBC, Reuters and Al Jazeera reported. NBC and Reuters reported that Paramount also agreed to cover Warner Bros. Discovery’s cost of canceling the Netflix agreement. Reuters and Al Jazeera reported that the Ellison family trust has committed $45.7 billion in equity.
The deal is not complete. Warner Bros. Discovery’s board must formally terminate the Netflix agreement and adopt Paramount’s merger agreement, Reuters and NBC reported. NBC and Al Jazeera said a shareholder vote is set for March 20, and CBS News, NBC and Al Jazeera reported that the deal still needs regulatory approval; CBS News said Justice Department officials told Netflix co-chief Ted Sarandos they expect a comprehensive antitrust investigation.
The outcome carries media-industry implications. NBC and Al Jazeera noted that CNN would become part of Paramount, which owns CBS News.
Sources
- CBS News, Feb. 27, 2026: Netflix’s decision, $27.75 and $31 offers, board’s ‘superior’ finding, $7 billion fee, antitrust review <https://www.cbsnews.com/news/netflix-warner-paramount-skydance-deal/>
- NBC News, Feb. 26, 2026: Netflix’s decision, Paramount’s $31 offer, termination fee, March 20 vote, CNN, Senate hearing <https://www.nbcnews.com/business/media/warner-bros-discovery-says-paramounts-offer-superior-netflix-deal-rcna260861>
- Reuters (via Yahoo Finance), Feb. 26, 2026: Netflix’s offer, termination fee, financing, board steps, California attorney general <https://finance.yahoo.com/news/warner-bros-says-paramount-bid-212225969.html>
- Reuters (via Yahoo Finance), Feb. 27, 2026: share moves, deal value, valuation multiple <https://finance.yahoo.com/news/netflix-paramount-shares-jump-months-100848749.html>
- Al Jazeera, Feb. 27, 2026: Netflix’s decision, share moves, deal value, termination fee, equity commitment <https://www.aljazeera.com/economy/2026/2/27/netflix-stock-surges-as-it-walks-away-from-warner-bros-deal>
- Al Jazeera, Feb. 24, 2026: the earlier Paramount and Netflix bids and the March 20 shareholder vote <https://www.aljazeera.com/economy/2026/2/24/warner-bros-gets-new-offer-from-paramount-but-still-recommends-netflix-bid>
This article was drafted with automated tools from the sources listed, checked by a review pass, and published by Daniel Varrone. Corrections: editor@monochromechronicles.com