Platform Withdraws from Bidding War for Warner Bros. Discovery, Clearing Path for Paramount Skydance
In a statement released on February 26, Netflix announced that it would not raise its offer for WBD. This decision came after WBD officially notified the streamer that Paramount Skydance’s latest proposal constituted a “better offer,” as per their existing merger agreement.
In a joint statement, co-CEOs Ted Sarandos and Greg Peters emphasized that the proposed deal “would have created value for shareholders, with a clear path to regulatory approval,” but that “at the necessary price to match Paramount Skydance’s latest offer, the transaction is no longer financially attractive.” They insisted, “This operation has always been a ‘desirable asset’ at the right price, not an ‘imperative’ at any price.”
Netflix commended the leadership of the group in conducting the process, citing CEO David Zaslav, CFO Gunnar Wiedenfels, as well as Bruce Campbell and Brad Singer, members of the management and board. “We are convinced that we would have been strong custodians of Warner Bros.’ iconic brands, and that our project would have strengthened the entertainment industry while preserving and creating more production jobs in the United States,” added the executives. The platform plans to invest around $20 billion in films and series in 2026 while also relaunching its stock buyback program.
Paramount Skydance in a Strong Position
This withdrawal marks a crucial turning point in the WBD sale process, leaving rival Paramount Skydance free to acquire the group, potentially one of the most decisive operations in recent years for the global entertainment industry. Beyond its “industrial” dimension, the case has also been heavy with stakes and political pressures, notably with a President Trump who increasingly favored Paramount – owned by David Ellison, son of his staunch supporter Larry Ellison. In this climate, Ted Sarandos’ meeting with representatives of the American administration, just hours before Netflix’s withdrawal announcement, only fueled speculation. If the anticipated tightening of regulatory framework may have helped cool the platform’s ambitions, it is expected to apply equally rigorously to the project led by Paramount Skydance, whose outcome will remain subject to federal authorities’ review.
