Topline
Netflix said Thursday it will not match a new offer Paramount Skydance recently made for Warner Bros. Discovery, opening up the doors for Paramount Skydance to prevail in a back-and-forth bidding war sure to shake up the media and entertainment industry.
Key Facts
Warner Bros. Discovery said in a Thursday statement Paramount Skydance’s bid “constitutes a ‘Company Superior Proposal’ as defined in WBD’s merger agreement with Netflix.”
The statement noted Warner Bros. Discovery’s merger agreement with Netflix is still in effect and that the company’s board of directors “continues to recommend in favor of the Netflix transaction”—for now.
Just a few hours later, Netflix confirmed it would not raise its offer for Warner Bros. Discovery, saying “the deal is no longer financially attractive.”
Paramount revised its offer for Warner Bros. Discovery on Tuesday, increasing its $30 per share proposal to $31 in a deal that would value Warner Bros. Discovery at about $77 billion.
Netflix is offering $27.75 per share, or $82.7 billion, for Warner Bros. Discovery’s studio and its streaming businesses, a smaller portion of the company than Paramount Skydance is seeking.
Forbes has reached out to Paramount Skydance for comment.
Crucial Quote
“But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” Netflix co-CEOs Ted Sarandos and Greg Peters said in the statement.
Key Background
Warner Bros. Discovery began exploring a sale in the fall of 2025 after the merger between WarnerMedia and Discovery left the consolidated company with roughly $35 billion in debt. The company also suffered from the rise of streaming platforms and cord cutting, sending shares tumbling about 60% the year of the merger.
Further Reading
Paramount’s David Ellison Tapped As State Of The Union Guest After Trump Wades Into Warner Bros. Battle (Forbes)
