Netflix Declines to Counter Paramount’s ‘Superior’ Bid for WBD Assets
February 26, 2026
In a surprise turn, Netflix has waved the white flag in its bid to purchase Warner Bros. Discovery assets.
Netflix Feb. 26 announced that it has declined to raise its offer for Warner Bros. Netflix had earlier received notice from Warner Bros. Discovery that its board of directors has determined Paramount Skydance’s latest proposal constitutes a “superior proposal” under the terms of WBD’s existing merger agreement with Netflix.
Netflix issued the following statement in response from co-CEOs Ted Sarandos and Greg Peters.
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” read the statement. “However, 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 the Paramount Skydance bid.
“Warner Bros. is a world-class organization, and we want to thank David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the WBD Board for running a fair and rigorous process. We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the U.S. But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.
“Netflix’s business is healthy, strong and growing organically, powered by our slate and best-in-class streaming service. This year, we’ll invest approximately $20 billion in quality films and series and will expand our entertainment offering. Consistent with our capital allocation policy, we’ll also resume our share repurchase program.
“We will continue to do what we’ve done for more than 20 years as a public company: delight our members, profitably grow our business, and drive long-term shareholder value.”
WBD execs praised their dealings with Netflix.
“Netflix is a great company and throughout this process Ted, Greg, Spence and everyone there have been extraordinary partners to us. We wish them well in the future,” said David Zaslav, president and CEO of Warner Bros. Discovery. “Once our Board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders. We are excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery and can’t wait to get started working together telling the stories that move the world.”
Samuel A. Di Piazza, Jr., chair of the Warner Bros. Discovery board of directors added, “I am extremely proud of the rigorous process this board has run over the past five and a half months that has led us to the cusp of combining these two storied companies and the excitement it will bring to audiences for many years to come.”
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