The long-running battle between Paramount and Netflix over Warner Bros. Discovery (WBD) has now taken a decisive turn. The WBD’s board deemed Paramount Skydance’s revised bid of $31 per share, all cash as superior to Netflix’s earlier offer of $27.75 per share for WBD’s studio and streaming assets. Paramount’s proposal covers the entirety of WBD, including pay-TV networks such as CNN, TBS, and TBT, and includes a $7 billion breakup fee to safeguard against regulatory hurdles.

Netflix steps aside

According to a report by CNBC, Netflix which had granted WBD a seven-day waiver to reopen talks with Paramount, chose not to revise its bid. In a joint statement, co-CEOs Ted Sarandos and Greg Peters said: “At the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match.” They emphasized that while Netflix believed it could have been a strong steward of Warner Bros.’ iconic brands, the transaction was always a “nice to have” rather than a “must have.”

David Zaslav’s farewell message

WBD CEO David Zaslav has also acknowledged Netflix’s role on the process, saying: “Netflix is a great company and throughout this process Ted, Greg, Spence and everyone there have been extraordinary partners to us. We wish them well in the future.” He added that once the board votes to adopt the Paramount merger agreement, it will create “tremendous value” for shareholders and usher in a new era of collaboration between Paramount Skydance and WBD.The market responded swiftly: Netflix shares jumped 10% in extended trading, Paramount gained 5%, while WBD fell 2%. Analysts noted that Netflix’s disciplined approach avoided overpaying, while Paramount’s aggressive bid underscored its determination to consolidate its position in the media landscape.