Netflix Declines to Match Paramount Skydance’s Offer for Warner Bros. Discovery

Netflix has made the surprising decision to not increase its offer for Warner Bros. Discovery after Paramount Skydance’s bid was deemed a “superior proposal” by the media company’s board, led by David Zaslav.

The industry was caught off guard by Netflix’s swift response, as the streaming giant had until Wednesday, March 4 to come up with a new proposal to salvage its deal with WBD. Even more unexpected was Netflix co-CEO Ted Sarandos’ presence in Washington, D.C. earlier in the day to lobby Trump administration officials on the deal, only to have Paramount’s new $31 per share offer sway the decision.

In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters expressed their disappointment in not being able to reach an agreement with Warner Bros. Discovery, citing financial concerns as the primary reason for declining to match Paramount Skydance’s bid. Despite the missed opportunity, Netflix remains confident in its business’s growth and plans to continue investing in quality content.

The now-defunct Netflix deal with Warner Bros. Discovery was valued at nearly $83 billion, while Paramount’s latest bid totaled around $111 billion for the entire media company, including its cable channels. Paramount’s offer included a higher purchase price, an increased regulatory breakup fee, and a commitment to cover the termination fee required to end WBD’s existing merger agreement with Netflix.