Paramount Skydance Secures Dominance Over Warner Bros. Discovery as Netflix Withdraws

In a significant shift in the entertainment industry, Paramount Skydance has successfully acquired Warner Bros. Discovery after Netflix decided to withdraw its bid. Despite an initial agreement, Netflix found the financial terms to match Paramount's superior offer unappealing. This acquisition grants Paramount control over a vast array of iconic franchises and streaming services, including HBO and DC Comics. Netflix, while stepping back, plans to continue investing heavily in original content. This development marks a pivotal moment in the competitive landscape of streaming services and film production.

By Narendra Chaudhary Feb 27, 2026, 08:37 IST

Paramount Skydance Triumphs in Warner Bros. Acquisition

Netflix has opted not to proceed with its acquisition of Warner Bros. Discovery, despite an agreement reached in December. This decision was announced on Thursday, following Warner Bros. Discovery's declaration that Paramount Skydance had submitted a ‘superior proposal’. In a competitive move, Paramount Skydance proposed a higher bid than Netflix’s offer. Reports indicate that Paramount made a hostile bid of $111 billion, surpassing Netflix’s $83 billion proposal from November 2025. Netflix was required to present a revised offer by March 4 to maintain its interest in the deal. With Netflix's withdrawal, Paramount Skydance has officially secured the acquisition, as confirmed by WBD CEO David Zaslav.

Netflix's Response to the Warner Bros. Deal

In a formal statement, Netflix co-CEOs Ted Sarandos and Greg Peters expressed that matching Paramount Skydance’s latest offer was no longer financially viable. They stated, “We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the U.S. But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”

Ted and Greg further elaborated, stating, “This year, we’ll invest approximately $20 billion in quality films and series and will expand our entertaining offering. Consistent with our capital allocation policy, we’ll also resume our share repurchase program. We will continue to do what we’ve done for more than 20 years as a public company: delight our members, profitably grow our business, and drive long-term shareholder value.”

Implications of Paramount Skydance's Victory

With Paramount Skydance emerging victorious, it will oversee a vast array of properties including HBO / HBO Max, CNN, CBS, DC Studios, Cartoon Network, Adult Swim, Paramount+, Nickelodeon, MTV, Showtime, TNT, Comedy Central, Turner Classic Movies (TCM), and DC Comics. This acquisition will grant control over major franchises such as Game of Thrones, The Lord of the Rings, Harry Potter, Star Trek, Mission: Impossible, Transformers, The Conjuring, A Quiet Place, Mortal Kombat, Teenage Mutant Ninja Turtles, Looney Tunes, Tom & Jerry, Beetlejuice, Gremlins, SpongeBob SquarePants, Avatar: The Last Airbender, and Dora the Explorer. Last December, Warner Bros. announced plans to sell its film and streaming divisions, including HBO, to Netflix for $27.75 per share, totaling approximately $82 billion, including debt, which sparked diverse reactions from industry leaders.