Paramount Skydance has won the bidding war for Warner Bros Discovery after Netflix declined to raise its offer, Reuters reported. Netflix confirmed it walked away, saying the deal was no longer financially attractive at Paramount’s latest bid. The move leaves Paramount poised to merge with Warner Bros, potentially reshaping Hollywood’s studio and streaming landscape.
Netflix had bid $27.75 per share for Warner Bros’ assets, while Paramount raised its offer to $31 per share. Warner Bros’ board must now terminate the Netflix deal and adopt Paramount’s offer. CEO David Zaslav said the merger would create “tremendous value” for shareholders and expand storytelling potential across platforms.
Read more: Warner Bros faces tough choice between Netflix and Paramount deal
Paramount pursued Warner Bros aggressively, launching a hostile campaign and revising its bid with a higher cash offer. Netflix advisers reportedly recommended withdrawing because competing with billionaire Larry Ellison, backing Paramount, was financially impractical. Netflix shares rose more than 10% following the announcement.
The merger would unite major studios, streaming services (HBO Max and Paramount+), and news outlets (CNN and CBS). Analysts warn the deal faces antitrust scrutiny in the U.S. and internationally, with California regulators and European authorities likely to review the merger carefully. Paramount increased its termination fee and agreed to cover Warner Bros’ fees to Netflix to secure approval.
Read more: Netflix wins Warner Bros board with cash offer
The Ellison Trust is committing $45.7 billion in equity, supported by Larry Ellison, alongside $57.5 billion in debt financing from major banks. Activist investor Ancora Holdings called Paramount’s latest offer a “win-win for shareholders and the industry,” noting Netflix’s exit paved the way for higher shareholder returns and regulatory feasibility.