Republicans said they would drop their oversight efforts of Netflix while Democrats aired antitrust concerns about Paramount buying Warner Bros.
1 of 5 | Netflix decided to drop its bid to buy Warner Bros. Discovery after Paramount Skydance raised its offer to $31 per share. File Photo by Jim Ruymen/UPI | License Photo
Netflix has decided to let go of its attempt to buy Warner Bros. Discovery after Paramount Skydance raised its purchase offer.
On Wednesday, Paramount raised its cash offer from $30 per share to $31 per share. On Thursday, WBD decided the offer was superior to Netflix’s offer, prompting the drop out.
“This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” said co-CEOs Ted Sarandos and Greg Peters in a statement.
With Netflix bowing out after Paramount raised its bid, Republicans in Congress canceled hearings about the streamer purchasing WBD as Democrats raised antitrust concerns about Paramount buying the legendary film studio and television company, NBC News reported.
Netflix’s bid was for $27.75 per share for the studios and streaming, while Paramount’s bid is for the entirety of the company.
“We’re super-disciplined buyers,” The New York Times reported Sarandos said earlier this month. “I’m willing to walk away and let someone else overpay for things.”
Netflix and Paramount have been duking it out over WBD since October. They had a bidding war, and WBD accepted Netflix’s offer on Dec. 5. Soon after, Paramount launched a hostile bid to buy WBD, but the board wasn’t interested. Then, Paramount announced that billionaire Oracle creator Larry Ellison would back the deal with $40 billion in equity. On Jan. 20, Netflix changed its offer to all cash, then on Feb. 10, Paramount did the same and added some extras.
Netflix granted WBD a seven-day pause on the deal to evaluate Paramount’s offer, and during that time, Paramount raised the bid even more to $31 per share.
If the deal doesn’t pass federal regulatory scrutiny, Netflix could come back and try again.
In a statement on Thursday, Sen. Elizabeth Warren, D-Mass., called the potential Paramount-WBD merger “an antitrust disaster threatening higher prices and fewer choices for American families.”
She also questioned a meeting that Sarandos had Thursday at the White House, before Netflix announced that it would not match Paramount’s offer.
Friday morning, Sen. Mike Lee, R-Utah, canceled a March 4 hearing about antitrust and competition concerns that members of the Senate Judiciary Committee had about Netflix buying WBD.
“We are pleased WBD’s Board has unanimously affirmed the superior value of our offer, which delivers to WBD shareholders superior value, certainty and speed to closing,” David Ellison, Paramount CEO, said in a statement Thursday.
Warner Bros. CEO David Zaslav expressed gratitude to Netflix.
“Netflix is a great company, and throughout this process Ted [Sarandos], Greg [Peters], [CFO Spencer Neumann] and everyone there have been extraordinary partners to us. We wish them well in the future,” CNBC reported Zaslav said in a statement. “Once our Board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders. We are excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery, and can’t wait to get started working together telling the stories that move the world.”
Netflix stock rose 10% in extended trading Thursday, while Paramount stock jumped 5%, CNBC reported. Shares of Warner Bros. Discovery dropped 2%.
President Donald Trump delivers State of the Union address
President Donald Trump delivers his State of the Union address during a joint session of Congress in the House Chamber at the U.S. Capitol in Washington, on February 24, 2026. Pool photo by Kenny Holston/UPI | License Photo
