Paramount Skydance emerged as the likely winner in a months-long battle to acquire Warner Bros. Discovery, after streaming giant Netflix on Thursday refused to raise its offer for the historic Hollywood studio.
First modification: 02/27/2026 - 02:01 Last modification: 02/27/2026 - 03:31
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Netflix shares rose nearly 10% in post-close trading, Paramount shares had already risen 10% during the day and in extra trading they grew 6% more. Warner, on the other hand, added almost 2% to what it had already lost on the day.
“We have always been disciplined, and at the price necessary to match Paramount Skydance's latest offer, the deal is no longer financially attractive, so we have decided not to match Paramount Skydance's offer,” Netflix said in a statement.
Netflix confirmed to Reuters that it was withdrawing from the bidding process for Warner Bros Discovery. Warner Bros. board has yet to terminate the deal with Netflix and adopt Paramount Skydance's offer.
Earlier in the day, Warner Bros. said Paramount's revised offer of $31 per share was higher than its existing deal with Netflix, which had offered $27.75 per share for Warner Bros.' streaming and studio assets.
A Netflix adviser, who spoke on condition of anonymity, said he had recommended the platform withdraw from the bid because the deal no longer made economic sense.
The adviser claimed that Netflix was competing against a billionaire who had shown signs of being willing to pay a price considered unreasonable by Warner Bros.
“There's no point in playing chicken with someone who's not going to turn the wheel,” the source said, referring to billionaire Larry Ellison, co-founder, CEO and CTO of Oracle, and father of David Ellison, CEO of Paramount.
Regulatory concerns
The merger of Paramount with Warner Bros. would unite two major Hollywood studios, two streaming platforms (HBO Max and Paramount+) and two news operations ('CNN' and 'CBS').
The Ellisons have ties to President Donald Trump. Still, the offering is likely to face antitrust scrutiny in Washington, in foreign countries and in U.S. states, including California.
Democratic senators Elizabeth Warren, Bernie Sanders and Richard Blumenthal have expressed concern that approval of the deal could be affected by political favoritism.
In its revised offer, Paramount raised the termination penalty it would pay if the deal does not win regulatory approval to $7 billion, from $5.8 billion previously.
The Ellison Trust is committed to providing $45.7 billion in capital, up from $43.6 billion previously, backed by Larry Ellison and including any additional funds necessary to meet Paramount's banking solvency requirements, the firm said.
Bank of America Merrill Lynch, Citi and Apollo are providing $57.5 billion in debt financing, up from a previous commitment of $54 billion.
Activist investor Ancora Holdings, which owns a small stake in Warner Bros., has also stepped up pressure on HBO's owner, claiming the company failed to properly engage with Paramount.
(Reuters)
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