On February 26 there was a significant turning point in the global audiovisual industry when the offer made by Netflix, which had been approved on December 5, 2025, was outbid by Paramount. The latter company, owned by Skydance, has managed to reverse the situation and, as a result, it will acquire 100% of audiovisual giant Warner Bros. Discovery (WBD).
Netflix had entered into an agreement to acquire Warner Bros. in December 2025. The proposal included Warner’s film and television studios business, its entire video library, HBO network and OTT HBO Max, but it excluded Discovery Global. The offer had been USD 27.75 per share, which was roughly equivalent to USD 82.7 billion. Shortly afterwards, Paramount attempted to change the course of events by submitting a hostile bid aimed at reaching WBD’s shareholders directly. Although unsuccessful at the beginning, Paramount kept insisting. It was in February 2026 that the company improved its offer so significantly that it managed to persuade WBD’s Board of Directors. The new proposal includes the entire company, at USD 31 per share, which is roughly equivalent to USD 111 billion.
On February 26 Warner Bros. Discovery announced that Paramount’s bid constituted a “Company Superior Proposal” and that Netflix would be allowed a four-day period to match it. However, Netflix did not wait until the expiration of the period and pulled out of the bidding immediately.
In its press release, Netflix explained: “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. 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.”
Under the terms of the original agreement entered into by Netflix and WBD, the streaming platform would be paid a termination fee of USD 2.8 billion in the event the transaction did not close. In compliance with such provision, Paramount Skydance payed the above-mentioned amount to Netflix on February 27.
The deal marks the beginning of a new stage in the sale of Warner Bros. Discovery. It is estimated that the purchase process will conclude in the third quarter of the current year.
