Netflix drops WBD bid as Paramount ups offer
Netflix announced it will not increase its acquisition offer for Warner Bros. Discovery after the board deemed Paramount Skydance’s revised $31-per-share proposal superior. The decision clears the path for a potential $81 billion merger that could reshape the US media sector, pending regulatory approval and shareholder backing.
US streaming giant Netflix confirmed it will not revise its takeover proposal for Warner Bros. Discovery (WBD), stepping aside after the company’s board endorsed a higher bid from Paramount Skydance. The revised offer values WBD at roughly $81 billion, intensifying consolidation in the US media and entertainment industry.
Financial discipline over expansion
In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters said matching the $31-per-share proposal would no longer make financial sense. “We’ve always been disciplined,” the executives stated, adding that the transaction was attractive only at the right valuation. Netflix had previously agreed in December to purchase Warner’s film and television studios and the HBO Max streaming platform for $27.75 per share, a deal valued at around $72 billion.
Paramount’s comprehensive takeover bid
The competing proposal from Paramount Skydance covers the entirety of Warner Bros. Discovery, including its cable television assets. The offer also features a $7 billion reverse termination fee in case regulatory approval is not secured and includes coverage of a $2.8 billion breakup fee owed to Netflix. WBD Chief Executive David Zaslav said adopting the Paramount merger agreement would generate “tremendous value” for shareholders.
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If cleared by regulators, the merger would unite Paramount’s portfolio with Warner Bros., HBO and major cable brands such as CNN and TNT, signalling a major restructuring of the US entertainment market at a time of fierce competition in streaming and traditional broadcasting.
White House meeting draws attention
Separately, CNBC reported that Sarandos visited the White House on Thursday in connection with the broader bid process. A US official clarified that the meeting did not involve President Donald Trump but rather White House staff. The visit came after Trump publicly urged Netflix to remove former national security adviser Susan Rice from its board, warning of unspecified consequences if the company failed to act.
The evolving bidding contest underscores the accelerating transformation of the US media landscape, where scale, streaming dominance and regulatory scrutiny increasingly shape strategic decisions.
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