Netflix walks away from Warner Bros deal, clearing path for Paramount takeover

Netflix declined to raise its offer to buy Warner Bros. Discovery's studio and streaming business in New York on Thursday, February 26, 2026, after Warner's board announced that Skydance-owned Paramount's offer was superior, making the new price 'no longer financially attractive' for the streaming giant. In a joint statement, Netflix's co-CEOs Ted Sarandos and Greg Peters emphasized that they believed they would have been strong stewards of Warner Bros.' iconic brands, but clarified that 'this transaction was always a 'nice to have' at the right price, not a 'must have' at any price.' Warner had consistently backed the deal it struck with Netflix since December, and even when announcing Paramount's superior offer earlier that day, reiterated that its board stood by its previous recommendation in favor of Netflix. Paramount had just increased its rival bid for the entire company to $31 per share, along with other revisions to its offer, including a $7 billion regulatory termination fee and accelerated payment terms. A Warner Bros. Discovery buyout would significantly reshape Hollywood and the wider media landscape, as unlike Netflix—which only sought to purchase Warner's studio and streaming business for $27.75 per share—Paramount aims to acquire the entire company, potentially bringing HBO Max, 'Harry Potter' franchise, and CNN under its ownership. The merger would combine two of Hollywood's five legacy studios, bringing Warner's extensive library including 'Superman,' 'Barbie,' 'The White Lotus,' and 'Succession' alongside Paramount's holdings like 'Top Gun,' 'Titanic,' and 'The Godfather,' creating an unprecedented content powerhouse. However, the deal faces substantial antitrust scrutiny, with the U.S. Department of Justice already initiating reviews and other countries expected to follow suit, as critics warn it would further consolidate power in an industry already dominated by just a few major players, potentially resulting in job losses and reduced diversity in filmmaking.