Paramount set to acquire Warner Bros. Discovery as Netflix exits

Paramount Skydance is set to acquire Warner Bros. Discovery after Netflix decided to bow out of the bidding war. Netflix formally declined to increase its offer for Warner Bros. Discovery after Paramount Skydance’s latest bid was deemed a “superior proposal” by WBD.

The quick decision by Netflix to walk away might come as a surprise, given that the streamer had until March 4 to come up with a new proposal. Netflix co-CEO Ted Sarandos even visited Washington, D.C. earlier that day to discuss the deal with Trump administration officials. However, Netflix ultimately decided that the deal was no longer financially attractive and declined to match Paramount Skydance’s offer of $31 per share.

In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters thanked Warner Bros. Discovery for a fair process but stated that the deal was no longer financially viable for them. Despite this, they believed they would have been good stewards of Warner Bros.’ iconic brands and that their deal could have brought positive changes to the entertainment industry.