Paramount Skydance Wins Warner Bros Bid as Netflix Drops Out

Paramount Skydance is poised to clinch control of Warner Bros Discovery after rival bidder Netflix officially withdrew from the high-stakes takeover battle, marking a major shakeup in the global media and entertainment industry.

The drama unfolded on Thursday as Netflix confirmed it would not raise its existing bid to match Paramount Skydance’s revised proposal — a $31 per share all-cash offer valued at approximately $111 billion, including debt. Netflix executives said the deal was “no longer financially attractive” at the price needed to compete.

Warner Bros Discovery’s board of directors, earlier this week, deemed Paramount Skydance’s bid a “superior proposal” under the terms of its existing merger agreement with Netflix, triggering a final window for Netflix to respond. But after careful consideration, the streaming giant chose to step aside, effectively clearing the path for Paramount to win the prized Hollywood studio.

The new offer includes significant financial commitments, such as covering a $2.8 billion termination fee owed to Netflix under its original deal and a $7 billion regulatory breakup fee should the transaction face obstacles. Paramount has also secured about $57.5 billion in debt financing from major banks to support the acquisition.

Market reactions were swift. Netflix shares surged more than 10 % in after-hours trading as investors applauded the company’s disciplined decision, while Warner Bros Discovery’s stock slipped on the news. Paramount’s shares remained relatively steady as the industry began to absorb the implications of the takeover.

The agreement still faces regulatory scrutiny, particularly in the United States and abroad, as antitrust authorities assess the impact of such consolidation in the media landscape. Critics, including some lawmakers and industry analysts, warn the deal could reduce competition and concentrate too much influence under one sprawling entertainment conglomerate.

If finalized, the merger would unite Paramount’s CBS, MTV, and Paramount+ with Warner Bros.’ storied film and television catalog, HBO Max, CNN and more — creating one of the most powerful media entities in Hollywood.

Netflix, shifting focus after its exit, said it plans to invest heavily in original content and strategic initiatives while maintaining its position as a streaming leader.

Industry watchers say the end of this bidding war is unlikely to be the final chapter in Hollywood’s reshaping, as new alliances and competitive strategies continue to unfold.