Netflix has stepped away from its $83 billion bid to acquire Warner Bros. Discovery, ending what would have been one of the largest media deals in recent years and clearing the path for Paramount Skydance to move ahead with its own proposal. The decision closes months of negotiations and shifts the focus from a tech-driven takeover to a merger between two long-established Hollywood studios.
In December, Warner Bros. Discovery selected Netflix’s offer over Paramount’s earlier bid, calling it the strongest proposal on the table. However, Paramount Skydance continued to revise and improve its terms, pressing WBD’s board to reconsider. Over time, that pressure changed the direction of the deal.
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Netflix confirmed the move in a statement, explaining that it will not raise its offer after WBD’s board determined that Paramount Skydance’s latest proposal qualifies as a “Superior Proposal” under the existing merger agreement.
Netflix walked away
Co-CEOs Ted Sarandos and Greg Peters said the company stayed disciplined during negotiations and chose not to overpay.
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
Netflix leadership also described Warner Bros. Discovery as “a ‘nice to have’ at the right price, not a ‘must have’ at any price,” a line that underlines why the company stepped back instead of escalating the bidding war.
With Netflix out, the potential deal now centers on Paramount Skydance combining with Warner Bros. Discovery, bringing together two traditional film and television studios under one structure.
Apple, Netflix, and Formula 1 content shift
Recently, Netflix and Apple also revealed plans to share certain Formula 1 content. The upcoming season of Drive to Survive will stream on Apple TV in the United States, while the next F1 Canadian Grand Prix will stream on both platforms. Apple TV will serve as the primary home for Formula 1 streaming starting this season, marking another shift in the streaming landscape.
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