Netflix has withdrawn from its bid to acquire Warner Bros. Discovery, paving the way for Paramount Skydance to take the lead in a protracted takeover battle valued at approximately $110bn (£81.7bn). The decision marks a dramatic turn in a months-long contest over the future of one of Hollywood’s most storied studios. Warner Bros confirmed on Thursday that Paramount's revised offer was "superior" to Netflix's proposal. The streaming giant declined to increase its bid, effectively conceding the race for control of the entertainment powerhouse and its vast portfolio of film and television assets.
Netflix executives defended the decision, saying they had chosen not to match the higher offer because "the deal is no longer financially attractive" at the price. The acquisition, if completed, would have handed the buyer control of Warner Bros' iconic studio operations and extensive media networks, reshaping the competitive landscape of the global entertainment industry.
Last December, Warner Bros had agreed to sell certain film and streaming assets to Netflix in a deal worth roughly $82bn (£61bn), including debt. That agreement triggered a rival approach from Paramount, whose initial proposal was rebuffed before it returned this week with a sweetened offer, increasing its bid by $1 per share.
In a joint statement, Netflix co-chief executives Ted Sarandos and Greg Peters said: “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we've always been disciplined.” They added: “This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
The announcement came just hours after Sarandos visited the White House, underscoring the high political and regulatory stakes surrounding the deal. Despite Paramount’s apparent upper hand, California Attorney General Rob Bonta cautioned that the merger “is not a done deal”.
“These two Hollywood titans have not cleared regulatory scrutiny, the California Department of Justice has an open investigation, and we intend to be vigorous in our review,” Bonta wrote on social media. Any transaction would also require approval from the US Department of Justice and European regulators, reflecting the global scale of the companies involved.
A merger between Paramount and Warner Bros could have significant consequences for CNN, which is owned by Warner Bros. The network has frequently drawn criticism from US President Donald Trump, who in December argued that CNN should be sold as part of any deal and described those running it as “corrupt or incompetent”.
Paramount’s bid is backed by technology billionaire Larry Ellison and led by his son, David Ellison. The funding structure has attracted scrutiny over Larry Ellison’s close ties to Trump, while an earlier stage of the bid was supported by Trump’s son-in-law Jared Kushner through his investment firm, which later withdrew amid public concern.
If regulators approve the deal, Paramount would absorb Warner Bros’ HBO Max streaming subscribers and take control of assets including CNN, the Food Network and major sports properties, adding them to a portfolio that already features brands such as Nickelodeon, CBS and Comedy Central. For Hollywood, the outcome of this corporate drama is expected to bring sweeping changes, and likely job cuts, in an industry already grappling with production slowdowns and structural upheaval.
