SUMMARY
- Netflix exits the Warner Bros. Discovery bidding war after Paramount’s higher offer
- Paramount bid $31 per share and pledged $45.7 billion in equity backing
- Deal would have included HBO, HBO Max and Warner Bros. film and TV studios
LOS ANGELES, — Netflix said Thursday it has withdrawn from talks to acquire key assets of Warner Bros. Discovery after declining to match a higher bid from Paramount, ending a closely watched bidding war that could have reshaped the global streaming and film industries.
The decision closes weeks of negotiations over premium entertainment assets including HBO, HBO Max and the Warner Bros. film and television studios in Burbank, California.
The outcome signals continued discipline among major media companies navigating high interest rates, regulatory scrutiny and intensifying streaming competition.
In a letter to shareholders, Netflix co-CEOs Ted Sarandos and Greg Peters said the company declined to raise its $27.75 per share offer after Paramount proposed $31 per share in cash for HBO, the Burbank studios and cable networks including CNN and HGTV.
Paramount also offered $45.7 billion in equity personally guaranteed by Oracle co-founder Larry Ellison.
Netflix said it had four days to counter the latest bid but chose not to proceed. Warner Bros. Discovery CEO David Zaslav was thanked for “running a fair and rigorous process.”
The proposed transaction would have transferred control of some of Hollywood’s most valuable intellectual property at a time when traditional studios are reassessing scale and debt loads following pandemic-era disruptions.
| Bidder | Per-Share Offer | Assets Included | Additional Backing |
|---|---|---|---|
| Netflix | $27.75 | HBO, HBO Max, Warner Bros. studios | None disclosed |
| Paramount | $31.00 | HBO, studios, CNN, HGTV | $45.7B equity guarantee |
Michael Nathanson, founding partner at MoffettNathanson, said consolidation remains likely but pricing discipline reflects investor pressure to prioritize profitability over subscriber growth. “The market is rewarding balance sheet strength,” Nathanson said.
Jennifer Martin, professor of media economics at Northwestern University, said regulators would have closely examined any deal involving news and premium cable networks.
“Antitrust review would have focused on market concentration in streaming and advertising,” she said.
A Warner Bros. Discovery shareholder, who requested attribution as a portfolio manager at a New York asset firm, said the higher offer may appeal to investors seeking immediate value.
A senior production executive in Los Angeles said uncertainty over ownership has affected development timelines.
Netflix said it will continue to focus on member growth and shareholder returns. Paramount has not publicly disclosed a closing timeline. Analysts expect further consolidation discussions across the streaming sector.
The end of the Warner Bros. Discovery bidding war underscores how strategic ambition in Hollywood is being tempered by price sensitivity, regulatory risk and the evolving economics of global streaming.
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