Netflix exits bidding war for Warner Bros after Paramount offer

Anthony Robledo, USA TODAYThu, February 26, 2026 at 11:54 PM UTC

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Netflix exits bidding war for Warner Bros after Paramount offer

Netflix is no longer in discussions to buy Warner Bros. Discovery following a bidding war against Paramount.

In a letter to shareholders on Thursday, Feb. 26, the streaming giant announced it declined to raise its last offer and will be exiting the race to own the Hollywood movie studio.

"The transaction we negotiated would have created shareholder value with a clear path to regulatory approval," Netflix CEOs Ted Sarandos and Greg Peters said in a joint statement. "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."

Netflix offered to purchase $27.75 a share for the company's HBO, HBO Max and the Warner Bros. film and television studios in Burbank.

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Paramount's last offer on Monday, Feb. 23, was $31 a share in cash for HBO, the Burbank studios, and its cable television channels, including CNN and HGTV. Paramount also offered $45.7 billion in equity personally guaranteed by Oracle's billionaire co-founder, Larry Ellison.

Given four days to offer a counteroffer, Netflix ultimately decided to bow out. Sarandos and Peters thanked Warner Bros CEO David Zaslav and other executives 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," the statement continues.

Sarandos and Peters vowed to continue to "delight our members, profitably grow our business, and drive long-term shareholder value."

This article originally appeared on USA TODAY: Netflix drops offer to buy Warner Bros after Paramount offer

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