Netflix Drops Out of Warner Bros. Discovery Bidding War as Paramount Offer Moves Forward

Netflix has officially withdrawn from the bidding war to acquire Warner Bros. Discovery after the company’s board determined that Paramount’s takeover proposal offers greater value.

In a statement Thursday, Netflix confirmed it would not raise its offer to match Paramount Skydance’s latest bid, saying the deal was no longer financially attractive at the required price. The decision clears a major hurdle for Paramount, which now moves significantly closer to acquiring Warner Bros. Discovery and its assets, including CNN.

Investors appeared to welcome Netflix’s move. The company’s shares jumped more than 8% following the announcement, suggesting market relief that Netflix avoided a costly escalation in the high-stakes bidding battle.

Paramount’s most recent offer values Warner Bros. Discovery at $31 per share and includes incentives designed to reassure regulators, such as a $7 billion termination fee if the deal fails due to regulatory challenges. Warner Bros. Discovery leadership has emphasized that the competitive process has substantially increased shareholder value, with multiple price increases since negotiations began last fall.

The potential takeover comes amid broader political and regulatory attention surrounding major media mergers. Industry analysts have speculated that regulatory scrutiny could intensify depending on which company ultimately completes the acquisition.

Meanwhile, Netflix leadership met with White House staff earlier Thursday, though officials said the meeting was unrelated to the latest developments and had been scheduled weeks in advance.

With Netflix stepping aside, the focus now shifts to whether Paramount can finalize the acquisition and secure regulatory approval. If completed, the deal would reshape the media landscape, consolidating major entertainment and news assets under one corporate umbrella.

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