Netflix has revealed that it has declined to raise its offer for Warner Bros and has pulled out of the deal stating it's no longer financially attractive.

In December 2025, Netflix had agreed to acquire Warner Bros. from Warner Bros. Discovery (WBD) in a deal valued at an enterprise value of USD 82.7 billion, including USD 72 billion in equity.

Soon after, Paramount entered the fray with a bid that was first rejected by Warner Bros.

According to a statement issued by Netflix, it had earlier received a notice from WBD that its board of directors determined Paramount Skydance’s (PSKY) latest proposal constitutes a 'superior proposal' under the terms of WBD’s existing merger agreement with Netflix.

Netflix issued the following statement in response from co-CEOs Ted Sarandos and Greg Peters: 

The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid. 

Warner Bros. is a world-class organisation, and we want to thank David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the WBD Board for running a fair and rigorous process. We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the U.S.  But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.

Netflix’s business is healthy, strong and growing organically, powered by our slate and best-in-class streaming service. This year, we’ll invest approximately $20 billion in quality films and series and will expand our entertainment offering. Consistent with our capital allocation policy, we’ll also resume our share repurchase program.

We will continue to do what we’ve done for more than 20 years as a public company: delight our members, profitably grow our business, and drive long-term shareholder value.