Netflix has declined to raise its bid for Warner Bros., setting the stage for a takeover by rival Paramount. The streaming giant had announced its intention to acquire Warner Bros.’s film, TV and gaming businesses in December, much to Paramount’s chagrin.
In a news release, Netflix explained its reasoning for withdrawing from the bidding war after Warner Bros. Discovery shareholders deemed Paramount’s offer to be of “superior” value. In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters said the price required to match Paramount Skydance’s offer makes the Warner Bros. deal “no longer financially attractive” to the company.
“We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the U.S. But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” said Sarandos and Peters.
The executives added that even without Warner Bros., their “business is healthy, strong and growing organically” as it’s investing approximately $20 million into content in 2026 alone.
It’s a shocking move from Netflix, which has spent the past nearly three months arguing why it would be a much better owner than Paramount. The company had also repeatedly committed to maintaining Warner Bros.’ theatrical business in an attempt to address Hollywood’s concerns that all of its films would quickly be dumped on streaming.
Of course, this latest news doesn’t necessarily guarantee that Paramount will get Warner Bros. even if shareholders agree to its now-uncontested offer. After all, a deal of this magnitude would be subject to intense regulatory approval worldwide.
There are also many apprehensions surrounding a Paramount buyout. For one, this would mark a merger between two of the oldest and sole remaining major studios in Hollywood, which is expected to result in numerous job losses. And beyond that, there are concerns surrounding Paramount chief David Ellison’s close ties to U.S. President Donald Trump, as well as the studio’s offer being backed in part by Saudi Arabia. (Among broader concerns surrounding both an oligopoly and human rights violations, the Saudi government infamously murdered Washington Post journalist Jamal Khashoggi after he had been vocally critical of the regime.)
Source: Netflix
