Media

Netflix Drops Warner Bros. Bid After Paramount Counteroffer

Does Paramount's $31 per share offer deliver superior value or would Netflix be overpaying at inflated prices?

Published FEB 27

#Media

Netflix Drops Warner Bros. Bid After Paramount Counteroffer

Story

Above: A Warner Bros. Studios water tower in Burbank, CA, on Feb. 23. Image credit: Eric Thayer/Los Angeles Times/Getty Images

The Facts

Netflix announced on Thursday that it would not raise its offer to acquire Warner Bros. Discovery, creating an opening for Paramount Skydance to purchase the media and entertainment company following a months-long competition for the studio.
Netflix
New York Post
CBS News
Netflix and Warner Bros. Discovery originally entered into a definitive agreement in December 2025 for Netflix to acquire Warner Bros. Discovery for $27.75 per share, with a total enterprise value of approximately $82.7 billion. Netflix later amended the transaction to an all-cash structure in January.
Netflix
Netflix
A few days later, Paramount Skydance made a competing offer to acquire Warner Bros. Discovery for $30 per share in an all-cash transaction, which Paramount's Board of Directors declared was a "clearly superior alternative" to Netflix's deal.
Paramount
On Tuesday, Paramount Skydance upped its offer to $31.00 per share, with the added inclusion of a daily "ticking fee" of $0.25 per quarter, as well as commitments to pay a $7 billion regulatory termination fee and $2.8 billion to Netflix to terminate Warner Bros. Discovery's existing merger agreement with the company.
Warner Bros. Discovery
Paramount
After considering the offer, Warner Bros. Discovery's Board of Directors concluded that Paramount Skydance's proposition constituted a "Superior Proposal" to the firm, granting Netflix four business days to revise the terms of its bid.
Warner Bros. Discovery
Netflix, however, declared it would not match Paramount Skydance's offer, with co-CEOs Ted Sarandos and Greg Peters issuing a statement claiming that the deal was "no longer financially attractive," describing it as "nice to have" but "not a 'must have' at any price."
Netflix

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

Paramount's offer for Warner Bros. Discovery delivers the superior value and certainty that shareholders deserve, backed by commitments from the Ellison Trust and the banks. Given all the bells and whistles that came with this proposition, it is no wonder that Warner Bros. Discovery's board unanimously recognized this as superior to Netflix's proposal.

Paramount

Narrative B

In walking away from Warner Bros. Discovery, Netflix has demonstrated its financial acumen and fiscal discipline. While the acquisition would have been a boon, it was not essential ,as Netflix's business remains healthy and growth is strong. Matching Paramount Skydance's inflated bid, meanwhile, would have destroyed value for Netflix's shareholders.

Netflix

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