Netflix Abandons Warner Bros. Bid, Clearing Path for Ellison
Netflix Warner Bros Discovery deal 2026
Netflix officially withdrew its bid to acquire the studio and streaming assets of Warner Bros. Discovery on Thursday, effectively ending a months-long bidding war that has reshaped the Hollywood landscape. In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters confirmed that the streaming giant would not raise its previous $82.7 billion offer after the Warner Bros. board declared a rival proposal from Paramount Skydance to be superior. Netflix executives noted that while they would have been “strong stewards” of the iconic brands, the deal was no longer “financially attractive” at the higher price point required to remain competitive. This strategic retreat by Netflix leaves the door wide open for David Ellison, CEO of Paramount Skydance, to consolidate Warner Bros. Discovery under the control of his expanding media empire. This major corporate shift occurs as the global community monitors several other high-stakes developments, including the diplomatic crisis between Denmark and the United States over Greenland and the ongoing ICC hearings for Rodrigo Duterte.
The revised offer from Paramount Skydance is valued at approximately $111 billion, or $31 per share in cash, a significant premium over the $27.75 per share deal Netflix reached with Warner Bros. in December. Crucially, the Ellison-led proposal includes the acquisition of the entire company, including its linear cable networks such as CNN, TNT, and TBS, which Netflix had planned to exclude from its acquisition. According to reports from The Guardian, Paramount has also agreed to pay a $7 billion regulatory termination fee and cover the $2.8 billion breakup fee that Warner Bros. Discovery now owes to Netflix. The deal is heavily backed by Oracle founder Larry Ellison, whose close ties to the Trump administration have led many analysts to believe the merger will face a smoother regulatory path than the Netflix bid. This corporate maneuvers coincide with a period of intense national activity, ranging from the triumphant 2026 State of the Union address to the sentencing of Deividas Skebas for a high-profile murder in the United Kingdom.
Warner Bros. Discovery CEO David Zaslav praised Netflix for its “disciplined” approach but expressed enthusiasm for the potential of a combined Paramount-Warner entity. Zaslav noted that the board unanimously reaffirmed the superior value of the Paramount offer, which provides greater certainty and speed to closing for shareholders. The merger would unite a massive portfolio of intellectual property, including HBO, the DC Universe, and the Paramount+ streaming service, under a single corporate umbrella. As reported by the Associated Press, the transaction marks a significant victory for David Ellison, who successfully merged Skydance with Paramount last summer before launching this hostile pursuit of Warner Bros. This consolidation of media power follows other significant news stories this week, such as the historic 7.1 magnitude earthquake off Malaysia’s coast and the sudden end of Adult Swim’s Smiling Friends.
Despite the board’s approval, the merger is expected to face intense scrutiny from antitrust advocates who warn that the deal could stifle competition and lead to fewer choices for consumers. Senator Elizabeth Warren has already characterized the potential takeover as an “antitrust disaster” that threatens the integrity of news and entertainment production in the United States. Furthermore, the involvement of Larry Ellison and his relationship with President Trump has introduced a political dimension to the regulatory review process. For those following live financial updates, market reactions have been immediate, with Netflix shares rising nearly 10% in extended trading while Warner Bros. shares experienced slight volatility. As the industry prepares for a formal vote on the Paramount merger on March 20, the focus remains on how this mega-merger will impact the thousands of employees currently working across the various network and studio properties.
