Netflix has decided not to raise its bid for Warner Bros., clearing the path for David Ellison’s Paramount Skydance to emerge as the likely winner in the high-stakes deal for the studio.
The decision effectively ends Netflix’s pursuit of Warner Bros. and leaves Paramount Skydance as the leading bidder.
Netflix Explains Its Decision
In a statement released Thursday, Netflix co-CEOs Ted Sarandos and Greg Peters said the company chose not to match the latest Paramount Skydance offer because the deal no longer made financial sense.
They said the acquisition was “no longer financially attractive” and emphasized it was never essential to Netflix’s strategy.
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” the co-CEOs said. “However, we’ve always been disciplined, and at the price required to match the Paramount Skydance bid, the deal is no longer financially attractive, so we are declining to match.”
Praise for Warner Bros. Leadership
Sarandos and Peters also praised the Warner Bros. team for its handling of the process.
“Warner Bros. is a world-class organization,” they said, thanking David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer, and the Warner Bros. Discovery board. They added that Netflix believed it would have been a strong steward of the studio’s iconic brands.
Still, they reiterated the limits of their interest.
“This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” the statement said.
Paramount Skydance’s Offer Details
Paramount Skydance’s latest proposal values Warner Bros. at $31 per share. The bid also includes several additional incentives for shareholders.
Those terms include a ticking fee of $0.25 per share per quarter beginning after Sept. 30, 2026, and a $7 billion regulatory termination fee if the deal fails to close due to regulatory issues.
Termination Fee Covered
As part of the agreement, Paramount Skydance has also agreed to cover the $2.8 billion termination fee Warner Bros. would owe Netflix to exit the existing merger agreement.
With Netflix stepping aside, the deal now appears firmly tilted in Paramount Skydance’s favor.
