Paramount wins $111 billion Warner Bros acquisition battle as Netflix walks away

Paramount has won the battle for Warner Bros. Discovery after Netflix dropped out of the bidding war on Thursday. This brings an end to one of Hollywood’s most dramatic takeover battles in years.

Netflix said it would not raise its offer after Warner Bros. Discovery’s board declared Paramount’s $111 billion bid “superior.” The streaming giant said that while its deal would have created shareholder value, matching Paramount’s price made the deal “no longer financially attractive.”

The decision hands victory to Paramount CEO David Ellison, whose company will now acquire all of Warner Bros. Discovery, including Warner Bros. studios, HBO, HBO Max, CNN, and cable channels like TBS, TNT, and Discovery.

Paramount’s bid values WBD at $31 per share and includes taking on about $33 billion in debt.

From multiple rejections to acceptance

This wasn’t Paramount’s first attempt. The company made hostile bids for Warner Bros. Discovery in December 2025, right after Netflix announced its $82.7 billion deal to buy WBD’s streaming and studio assets.

Warner Bros. Discovery’s board rejected Paramount’s initial offers multiple times, publicly endorsing the Netflix deal instead. Paramount’s first bid was $108.4 billion for the entire company, more than Netflix was offering, but WBD did not budge.

Also read: Warner Bros. rejects $108bn Paramount deal, prefers Netflix $82.7 billion offer

Then Paramount kept raising the offer. By February 24, the company submitted a revised offer at $31 per share, bringing the total to $111 billion. That’s when everything changed. On February 26, WBD’s board determined Paramount’s offer was “superior” and gave Netflix four business days to match it.

Why Netflix walked out and why Paramount won

Netflix co-CEOs Ted Sarandos and Greg Peters said the company had “always been disciplined” and wouldn’t overpay to win. At the price needed to match Paramount, the math didn’t work.

Netflix’s deal was for Warner Bros. studios, HBO, and HBO Max, not the cable networks. The company wanted WBD’s content library and production capabilities to strengthen its streaming business, but wasn’t interested in traditional TV channels like CNN or TNT. Paramount’s offer includes everything, which is worth more to WBD shareholders but too expensive for Netflix.

Beyond the higher price, Paramount sweetened the deal with protections that made it hard for Warner Bros. to refuse. The company agreed to pay a $7 billion reverse termination fee if regulators block the deal, plus the $2.8 billion breakup fee WBD owes Netflix for cancelling their agreement.

The bid is backed by Larry Ellison, Oracle’s executive chairman and David Ellison’s father, who is committing $45.7 billion in equity. Banks, including Bank of America, Citi, and Apollo, are providing $57.5 billion in debt financing.

The deal still needs shareholder approval, with a vote scheduled for March 20. But with Netflix out and no other bidders, Paramount is effectively guaranteed to win. The merger will combine two of Hollywood’s biggest studios under one roof, raising concerns about job cuts and industry consolidation.

Netflix’s stock jumped 10% in after-hours trading following the announcement, while Paramount shares rose 4.5%. Investors see Netflix avoiding an expensive acquisition as positive, while Paramount securing a major studio boosts its position in the entertainment industry.

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