Netflix Withdraws from Warner Bros. Discovery Acquisition as Paramount Skydance Secures $111 Billion Superior Bid

Netflix withdraws its $83B bid for Warner Bros. Discovery, allowing David Ellison's Paramount Skydance to take control for $111B. Read the full market analysis.

By: AXL Media

Published: Feb 27, 2026, 2:59 AM EST

Source: The information in this article was sourced from The New York Times

The Sudden De-escalation of a Hollywood Bidding War

The corporate battle for Warner Bros. Discovery reached a definitive conclusion on Thursday as Netflix announced it would not raise its bid to match a rival offer. Following a revised $111 billion proposal from Paramount Skydance, Netflix executives Ted Sarandos and Greg Peters issued a statement characterizing the acquisition as no longer financially attractive. The streaming giant had initially reached an $83 billion agreement in December 2024 to acquire key segments of the business, but ultimately prioritized fiscal discipline over aggressive expansion. This withdrawal effectively ends Netflix's immediate ambition to absorb the legacy film and prestige television powerhouse.

David Ellison’s Emergence as a Media Powerhouse

The exit of Netflix clears a direct path for David Ellison, the 43-year-old chairman of Paramount Skydance, to assume control of one of the world's most significant media portfolios. Backed by the financial resources of his father, Oracle founder Larry Ellison, the younger Ellison is positioned to oversee a combined entity that includes two major film studios and the 24-hour news network CNN. The deal values Warner Bros. Discovery at $31 per share, a remarkable recovery for a company that saw its stock trading at just $12 per share in September 2025 due to headwinds in traditional television.

Political Dimensions and Regulatory Oversight

The transaction has drawn significant political scrutiny, particularly regarding the relationship between the Ellison family and President Trump. David Ellison recently attended the State of the Union address, and the administration’s involvement has been a point of contention for industry observers. While Netflix co-CEO Ted Sarandos met with Justice Department officials this week, the discussions reportedly focused on the fair review of antitrust concerns. Paramount Skydance has attempted to market its proposal as a safer regulatory bet than a Netflix merger, even pledging a $7 billion breakup fee should regulators block the transaction.