Paramount outbids Netflix for Warner Bros. Discovery

Netflix getting outbid on Warner Bros. Discovery hands Paramount Skydance a $111 billion victory and reshapes the entire entertainment landscape.

Netflix walks away from the WBD deal

• Netflix co-CEOs Ted Sarandos and Greg Peters jointly confirmed the exit from negotiations.
• Matching Paramount Skydance's latest price made the acquisition financially unattractive for Netflix.
• Warner Bros. Discovery's board gave Netflix four days to match the superior bid or walk.
• Netflix's offer stood at $27.75 per share, covering only studio and streaming assets.

How the WBD bidding war played out

• Warner Bros. Discovery hit the market in the latter half of 2025, formed from a 2022 AT&T and Discovery merger.
• Netflix locked in a $72 billion deal for WBD's studio and streaming assets in October.
• Paramount Skydance fired back with a $108.4 billion all-cash hostile counteroffer three days later.
• WBD's board initially pushed shareholders toward Netflix's offer before Paramount kept sweetening the pot.

Paramount's winning offer breakdown

• A February 10, 2026, upgraded bid included coverage of the $2.8 billion Netflix breakup fee.
• Paramount cis ommitted to a debt refinancing backstop that trims WBD's costs by $1.5 billion.
• A $650 million-per-quarter ticking fee kicks in if the deal misses the end-of-2026 deadline.
• The final February 24 bid landed at $31 per share, bringing the total acquisition to $111 billion.

What this means for WB Games

• Netflix excluded WB Games from its offer entirely, calling it relatively minor.
• Paramount already runs Skydance Interactive and Skydance New Media under its umbrella.
• Amy Hennig's studio is actively developing Marvel 1943: Rise of Hydra and an untitled Star Wars game.
• Warner Bros. Games recently teased major releases expected within the next two years.