Paramount Skydance has emerged victorious in the bidding war for Warner Bros. Discovery, after Netflix declined to match the rival's latest $31-per-share all-cash offer for the entire company.
Warner Bros. Discovery's board determined that Paramount Skydance's revised bid—valuing the company at approximately $81 billion (or more than $110 billion including debt)—was superior to Netflix's prior agreement to acquire its studios, HBO, and streaming assets for $27.75 per share (about $83 billion including debt).
Netflix promptly walked away, with co-CEOs Ted Sarandos and Greg Peters stating: “We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match. This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
This represents a stunning come-from-behind win for Paramount Skydance.
Previously rebuffed by Warner Bros. Discovery, Paramount launched unsolicited bids last year and later a hostile takeover approach targeting the full company—including assets Netflix did not want, such as linear cable networks.
After Skydance acquired control of Paramount last August, pursuing Warner became a top priority to better compete against giants like Disney, Netflix, and Amazon.
Netflix's December deal for Warner's studios and streaming business had erased over $170 billion from its market value since speculation began last September, but its shares jumped about 10% in after-hours trading Thursday after exiting the pursuit.
Paramount's winning bid included sweeteners like a $7 billion regulatory termination fee (if the deal fails due to antitrust issues) and coverage of the $2.8 billion breakup fee Warner would owe Netflix. A daily ticking fee of $0.25 per share per quarter will also accrue after September 30, 2026.