By Megan Cerullo. Updated Feb. 27, 2026
Netflix said Thursday it will not match Paramount Skydance’s latest all-cash offer for Warner Bros. Discovery, effectively removing itself from the race and opening the way for a potential Paramount Skydance–Warner Bros. Discovery combination.
In December, Netflix reached a deal to acquire part of Warner Bros. Discovery at $27.75 a share — a transaction valued at roughly $82.7 billion. Paramount Skydance countered with an all-cash bid for the entire company, initially offering $30 per share and then raising that offer to $31 per share. Warner Bros. Discovery’s board told Netflix that the $31-per-share proposal qualified as a “superior proposal.”
Netflix co-CEOs Ted Sarandos and Greg Peters said in a joint statement that the original Netflix transaction “would have created shareholder value with a clear path to regulatory approval,” but that matching the Paramount Skydance price would not be financially attractive. “We’ve always been disciplined,” they added, explaining why Netflix declined to match the offer.
Paramount Skydance, which is the parent company of CBS News, did not immediately respond to requests for comment.
As the competing bids played out, Sarandos held meetings Thursday with several officials tied to the Trump administration. He met at the White House with Chief of Staff Susie Wiles and earlier had discussions at the Justice Department with Attorney General Pam Bondi, the antitrust division’s acting chief Omeed Assefi and other senior DOJ staff, according to people familiar with the meetings.
Warner Bros. Discovery controls a broad portfolio — film and streaming properties plus cable channels such as CNN, Food Network, HBO, HGTV, TBS, TNT and Turner Classic Movies — and any deal with Paramount Skydance would be subject to federal antitrust review. Justice Department officials had told Netflix they intended a comprehensive antitrust review of the Netflix–Warner Bros. Discovery proposal, and lawmakers and industry groups have raised concerns that combining major studios and streaming services could lessen competition.
Paramount Skydance has argued that a combined company would benefit consumers and help the industry recover from pandemic disruptions. Its enhanced offer includes a $7 billion termination fee if regulators block the acquisition.