Netflix walked away from its planned acquisition of Warner Bros. Discovery on Thursday, ceding a months-long bidding war to Paramount Skydance after the WBD board declared Paramount’s latest offer superior, according to CNBC.
The streaming giant said it had declined to raise its $83 billion bid after the WBD board determined Paramount’s $31-per-share all-cash offer was the better deal, according to the Hollywood Reporter.
The deal, which still requires federal, state, and international regulatory approval, would unite two of Hollywood’s largest movie studios — Warner Bros. and Paramount Skydance Studios — and combine the HBO Max and Paramount+ streaming services. It would also place CNN and CBS News under the same corporate umbrella. No specific combined brand name has been officially announced.
According to CNBC, Paramount agreed to pay the $2.8 billion breakup fee that WBD would owe Netflix if the deal fell through, and included a $7 billion breakup fee in the event the proposed merger fails to win regulatory approval. Paramount proceeded to pay the breakup fee to Netflix on Friday.
WBD CEO David Zaslav praised the outcome in a statement Thursday.
“Once our Board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders,” he said.
WBD’s stock price more than doubled during the months-long bidding war, adding $23 billion in market value in just five months, according to Axios. Netflix shares surged more than 10% in after-hours trading following its announcement, while Paramount stock gained 5% and WBD shares fell 2%, according to CNBC.
Paramount CEO David Ellison launched the original unsolicited bid for WBD in September 2025 and pursued the company through nine separate offers before prevailing. The deal is expected to close in late 2026, pending antitrust and regulatory review in both the United States and Europe, according to Reuters.