Netflix has officially stepped aside in the high-stakes battle for Warner Bros. Discovery, declining to match a significantly higher bid from Paramount Skydance.
The streaming giant had previously reached a December agreement to acquire HBO, HBO Max, and Warner Bros. Discovery’s TV and film studios, with plans to spin off certain cable networks and additional assets. However, Paramount Skydance dramatically escalated the situation with a reported $110 billion offer for the entirety of Warner Bros. Discovery—along with a $2.8 billion breakup fee payable to Netflix.
Warner Bros. Discovery’s board is expected to vote on the Paramount merger agreement on March 20, a decision that could reshape the global media landscape.
In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters emphasized that while the original proposal made strategic and regulatory sense, matching the revised offer would not be financially prudent. They described the potential acquisition as an opportunity—not a necessity—and reiterated Netflix’s focus on disciplined capital allocation.
Instead of entering a bidding war, Netflix plans to double down on internal growth, including an estimated $20 billion investment in original content this year.
Warner Bros. Discovery CEO David Zaslav thanked Netflix for its engagement during the review process and expressed optimism about the potential Paramount deal. Board Chair Samuel A. Di Piazza, Jr. noted that the months-long evaluation positioned the company to pursue long-term shareholder value.
If approved, the Paramount Skydance merger would mark one of the largest consolidation moves in modern media history.
