By Blessing Nweke
Streaming giant Netflix has withdrawn its bid to acquire Warner Bros. Discovery, clearing the way for Paramount Skydance to move closer to securing one of Hollywood’s most historic studios.
Warner Bros. Discovery confirmed Thursday that Paramount Skydance’s revised proposal was “superior” to Netflix’s offer. Netflix opted not to increase its bid, saying the acquisition was no longer financially attractive at the higher valuation.
In a joint statement, co-chief executives Ted Sarandos and Greg Peters said the company would remain disciplined on pricing. They described the potential deal as a strategic opportunity rather than a necessity, stressing it was a “nice to have” at the right price.
Paramount strengthened its position earlier this week by raising its offer by $1 per share to $31 in cash, while also agreeing to cover breakup fees tied to Warner Bros.’ prior agreement with Netflix. The improved terms significantly boosted confidence among investors and board members.
If approved by regulators, the takeover would reshape the entertainment industry. Paramount would gain control of Warner Bros.’ extensive film catalogue, streaming platform HBO Max, and major media brands including CNN and Food Network.
Paramount’s existing portfolio already includes CBS, Nickelodeon and Comedy Central, meaning the merger would create a media powerhouse spanning film, television, news and streaming.
The bidding war has sparked debate across Hollywood, with critics warning about consolidation, possible job cuts and the future direction of major brands. Paramount chief executive David Ellison said the proposal delivers “superior value, certainty and speed” for shareholders.
The deal, pending regulatory approval, marks the latest chapter in a months-long contest expected to redefine the global media landscape.
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