It appears that the war over ownership of Warner Bros. Discovery. Last week provided a shocking turn of events when Netflix, who was to take ownership of the massive company later this year, announced that they had walked away from the $83 billion deal. Netflix had given Warner Bros. Discovery seven days to renegotiate a possible deal with Paramount. Since then, Netflix co-CEOs Ted Sarandos and Greg Peters announced that they are “declining to match” the Paramount’s new bid:
“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.
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.”
The following was originally published February 19, 2026:
In a surprising move, Tuesday saw Netflix issue a waiver to Warner Bros. Discovery stating that it may reopen discussions with Paramount until Monday, giving the two companies an opportunity to renegotiate a possible takeover deal. Warner Bros. Discovery has since announced that it has begun talking with Paramount, stating that it is open to hearing the company’s “best and final” offer.
Still, the board of Warner Bros. Discovery continues to stand by its Netflix deal, with a meeting scheduled for March 20th to vote on the merger.
Netflix has issued a statement on the matter, declaring that it is allowing Warner Bros. Discovery to briefly reopen talks with Paramount in an attempt to quell any “distractions” caused by the company.
“Throughout the robust and highly competitive strategic review process, Netflix has consistently taken a constructive, responsive approach with WBD, in stark contrast to Paramount Skydance,” reads Netflix’s statement. “While we are confident that our transaction provides superior value and certainty, we recognize the ongoing distraction for WBD stockholders and the broader entertainment industry caused by PSKY’s antics. Accordingly, we granted WBD a narrow seven-day waiver of certain obligations under our merger agreement to allow them to engage with PSKY to fully and finally resolve this matter.”
The following was originally published January 11, 2026:
If you thought the Warner Bros-Netflix-Paramount saga was over, think again. We reported last week that Warner Bros. confirmed that it would be forgoing Paramount’s counter offer, and will instead proceed with Netflix’s acquisition of the company. In response, Paramount announced that it has filed a suit against Warner Bros. in an attempt to compel the company to disclose the financial details of its decision to move forward with Netflix.
“We do not undertake any of these actions lightly,” said Chairman and CEO of Paramount Skydance David Ellison in a letter to Warner Bros. shareholders.
When announcing Warner Bros. would move ahead with the Netflix merger, the company disparaged Paramount’s offer, claiming that it was a one-sided deal for Paramount and would require a large amount of debt financing. Paramount is now seeking to prove that these claims are untrue in court.
The following was originally published January 9, 2026:
Following a last-second coup attempt by Paramount, Warner Bros. has confirmed it will be going forward with its merger with Netflix. After plans of the company’s $82.7 billion acquisition became public, Paramount lobbied a counter-offer, with CEO David Ellison expressing confidence that its cash-forward offer would be favored.
That wasn’t to be the case, however, with Warner Bros. revealing in a shareholder presentation earlier this week that Paramount’s offer would require an “extraordinary amount of debt financing.” Warner Bros. further categorized the counter-offer as “effectively a one-sided option for PSKY [Paramount Skydance] as the offer can be terminated or amended by PSKY at any time.”
In an open letter to shareholders, Warner Bros. gave reasons for preferring Netflix’s offer, including the streaming juggernaut’s “market capitalization of approximately $400 billion, an investment grade balance sheet, an A/A3 credit rating and estimated free cash flow of more than $12 billion for 2026.”
While some high-profile shareholders are calling on Warner Bros. to further negotiate terms with Paramount, the company is currently on track to merge with Netflix in Q3 of this year.
The following was originally published December 5, 2025:
Netflix has announced today that it is acquiring Warner Bros., including HBO and HBO Max, for $82.7 billion. The deal is scheduled to close following Warner Bros. separation with Discovery Global, expected to take place in Q3 of 2026. Netflix is to maintain Warner Bros. current operations.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
“This acquisition will improve our offering and accelerate our business for decades to come,” continued Greg Peters, co-CEO of Netflix. “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
“Today’s announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” said David Zaslav, President and CEO of Warner Bros. Discovery. “For more than a century, Warner Bros. has thrilled audiences, captured the world’s attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world’s most resonant stories for generations to come.”
