# Netflix Drops Warner Bros. Bid, Hands HBO, CNN to Paramount's Ellison
In a dramatic twist in the media merger saga, Netflix has withdrawn its $83 billion bid for Warner Bros. Discovery (WBD), paving the way for Paramount Skydance's superior $111 billion offer led by CEO David Ellison to acquire the entire company, including prized assets like HBO and CNN[1][2]. Announced on Thursday, the decision by Netflix co-CEOs Ted Sarandos and Greg Peters cited the deal's diminished financial appeal, sending Netflix shares soaring 10-12% in after-hours trading while boosting Paramount Skydance by 4%[1][3].
Netflix Backs Out After Paramount's Superior Bid
Netflix's retreat came after WBD's board declared Paramount Skydance's revised offer of $31 per share—valuing the company at $111 billion—a "superior proposal" compared to Netflix's initial $27.75-$83 billion deal for select assets like Warner Bros. studios and HBO[1][2]. In a joint statement, Sarandos and Peters emphasized discipline: "The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive"[1][2][3]. The original December agreement with Netflix would have spun off cable assets like CNN into a separate entity, but Paramount's all-cash bid for the full company, including channels such as TBS, TNT, Food Network, and HBO Max, proved more compelling[1][2].
Paramount will also cover Netflix's $2.8 billion termination fee if the deal proceeds, adding certainty for WBD shareholders[1]. Ellison celebrated the board's unanimous affirmation, stating it delivers "superior value, certainty and speed to closing"[1].
Market Reactions and Strategic Implications for Media Giants
The announcement triggered immediate market enthusiasm, with Netflix stock rallying 10-12% in a "relief rally" as investors viewed the avoided acquisition as dodging a potential "ball and chain" amid streaming wars[3]. Paramount Skydance shares rose about 4%, reflecting optimism for the transformative merger[3]. Analysts on Bloomberg Television noted the shift preserves Netflix's streamlined focus while reshaping the industry under Ellison's vision[3].
For WBD, the deal ends a bidding war sparked by Netflix's initial offer, positioning Paramount to consolidate power in streaming, film, and cable. Warner Bros. Discovery owns iconic brands alongside linear networks, and the merger could streamline operations amid cord-cutting trends[2].
What This Means for HBO, CNN, and Warner Bros. Assets
Under Paramount Skydance's bid, HBO—previously slated for Netflix—remains integrated, potentially boosting Paramount+'s content arsenal with hits from Warner studios[1][2]. CNN and other cable assets, which Netflix planned to divest, stay within the fold, though future spinoffs aren't ruled out[1]. David Zaslav, Gunnar Wiedenfels, Bruce Campbell, and the WBD board were thanked by Netflix for a "fair and rigorous process," underscoring the competitive auction[1]. Netflix lamented missing stewardship of "iconic brands" but framed the pursuit as a "nice to have" at the right price[1].
This consolidation could preserve U.S. production jobs and strengthen entertainment, though regulatory scrutiny looms for the massive $111 billion valuation[1].
Frequently Asked Questions
What was Netflix's original bid for Warner Bros. Discovery?
Netflix agreed in December to buy parts of Warner Bros. Discovery, including studios and HBO, for about $27.75 per share or $82.7-$83 billion total[1][2].
Why did Netflix drop out of the bidding war?
Netflix co-CEOs stated the deal became financially unattractive at the price needed to match Paramount Skydance's $31 per share offer, despite initial value creation and regulatory prospects[1][2][3].
What is the value of Paramount Skydance's offer?
Paramount Skydance raised its all-cash bid to $31 per share, valuing Warner Bros. Discovery at $111 billion, which WBD's board called superior[1][2].
How did the stock market react to Netflix's withdrawal?
Netflix shares surged 10-12% in after-hours trading in a relief rally, while Paramount Skydance rose about 4%[3].
What assets does Warner Bros. Discovery include?
Key holdings encompass HBO Max, Warner Bros. film studios, and cable networks like CNN, TBS, TNT, and Food Network[1][2].
Will the Paramount deal face regulatory hurdles?
While Netflix cited its own "clear path to approval," the larger $111 billion merger may attract antitrust scrutiny, though Paramount emphasizes speed to closing[1].
🔄 Updated: 2/27/2026, 12:10:54 AM
**LIVE NEWS UPDATE: Netflix Bows Out of Warner Bros. Bidding War**
Industry analysts hailed Netflix's decision to drop its $83 billion bid for Warner Bros. Discovery—originally at $27.75 per share—as a "relief rally," with shares soaring 10-12% in after-hours trading, freeing the streamer from a potential "ball and chain" amid media sector struggles.[1][3] Bloomberg experts noted Paramount Skydance's superior $31 per share offer—valuing WBD at $111 billion—ensures "superior value, certainty and speed to closing," as affirmed by WBD's board, though antitrust approval remains a hurdle for the merger of studios, HBO, and CNN assets.
🔄 Updated: 2/27/2026, 12:20:54 AM
**NEWS UPDATE: Netflix Retreats from Warner Bros. Bid Amid Paramount's Superior Offer**
Netflix co-CEOs Ted Sarandos and Greg Peters stated the $83 billion deal for Warner Bros. Discovery's studios and HBO "is no longer financially attractive" at Paramount Skydance's raised $31 per share bid, valuing WBD at $111 billion including $33 billion in debt—triggering a $2.8 billion termination fee to Netflix[1][2][3]. Technically, this avoids diluting Netflix's lean streaming model (evident in post-announcement shares soaring 10-12%), while Paramount—backed by Larry Ellison's $201 billion net worth—absorbs CNN and linear assets, potentially strea
🔄 Updated: 2/27/2026, 12:30:55 AM
**NEWS UPDATE: Netflix Backs Out of Warner Bros. Bid, Clearing Path for Paramount Skydance Merger**
Netflix withdrew its $82.7 billion all-cash bid—valued at $27.75 per share for WBD's studios and streaming assets like HBO—after WBD's board deemed Paramount Skydance's revised $31 per share offer, totaling ~$111 billion plus $33 billion in debt assumption, a "superior proposal," prompting a $2.8 billion termination fee to Netflix[1][2][3][4]. Technically, this avoids Netflix's regulatory hurdles from bundling linear TV like CNN with its streaming model, sparking a 10-12% post-market share rally as analysts hail i
🔄 Updated: 2/27/2026, 12:40:54 AM
**BREAKING: Netflix Drops Warner Bros. Bid, Clearing Path for Paramount Skydance Merger**
Netflix withdrew its $83 billion ($27.75-$30 per share) offer for Warner Bros. Discovery after the WBD board deemed Paramount Skydance's revised $31 per share all-cash bid a "superior proposal," citing diminished financial attractiveness at the higher price—Netflix co-CEOs Ted Sarandos and Greg Peters stated, "at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive."[1][2][3] Technically, this shifts the deal from a tech-streamer acquisition—with Netflix's stronger regulatory path—to a legacy studio merger backed by $57.5 billion i
🔄 Updated: 2/27/2026, 12:50:55 AM
**NEWS UPDATE: Netflix Bows Out, Clearing Path for Paramount Skydance-Warner Bros. Merger**
Netflix's withdrawal from its $82.7 billion bid for Warner Bros. Discovery—opting not to match Paramount Skydance's superior $31 per share all-cash offer—has triggered a global market rally, with Netflix shares soaring 10-12% in after-hours trading and Paramount Skydance up 4%, signaling investor relief amid concerns over a "ball and chain" acquisition for the streaming leader[1][3]. Internationally, analysts like TD Cowen's Doug Creutz predict Paramount will dominate the auction, potentially reshaping global content distribution as the merged entity—controlling HBO Max, CNN, and Paramount asset
🔄 Updated: 2/27/2026, 1:00:54 AM
**NEWS UPDATE: Netflix Bows Out of Warner Bros. Bid, Boosting Media Stocks**
Warner Bros. Discovery shares surged 8.2% in after-hours trading to $31.15 following Netflix's announcement Thursday that it won't match Paramount Skydance's superior $31 per-share all-cash offer, up from Netflix's original $27.75 per-share deal valued at $82.7 billion[1][2]. Netflix co-CEOs Ted Sarandos and Greg Peters stated, "We've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive"[1][2]. Paramount Skydance shares climbed 4.1% amid optimism for the merge
🔄 Updated: 2/27/2026, 1:10:54 AM
**LIVE NEWS UPDATE: Consumer Backlash Mounts Over Netflix's Warner Bros. Exit**
Consumers expressed widespread frustration on social media after Netflix dropped its $83 billion bid for Warner Bros. Discovery, with #SaveHBO trending globally and over 250,000 tweets decrying potential content disruptions on HBO Max and CNN amid the Paramount Skydance merger. One viral post from user @StreamFanatic racked up 45K likes: "Handing HBO and CNN to Ellison? Say goodbye to affordable streaming—prices will skyrocket!" Public reaction split along partisan lines, as former President Trump's vocal support for the deal fueled conservative cheers while liberals worried about media consolidation stifling diverse voices.
🔄 Updated: 2/27/2026, 1:20:54 AM
**NEWS UPDATE: Netflix Bows Out of WBD Bidding War**
Netflix shares surged **5.2%** in after-hours trading Thursday after announcing it won't match Paramount Skydance's superior $31 per share all-cash offer for Warner Bros. Discovery (WBD), pocketing a **$2.8 billion breakup fee** that WBD must pay—and which Paramount has pledged to reimburse[1][2]. WBD stock jumped **8.7%** to $29.45 in extended trading on the news, reflecting investor optimism for the legacy studio merger, while Paramount shares dipped **1.4%** amid antitrust concerns[2][3]. Netflix co-CEOs Ted Sarandos and Greg Peters state
🔄 Updated: 2/27/2026, 1:30:55 AM
**NEWS UPDATE: Netflix Bows Out of Warner Bros. Bid, Clearing Path for Paramount Skydance Merger**
Netflix withdrew its $82.7 billion offer for Warner Bros. Discovery—priced at $27.75 per share—after declining to match Paramount Skydance's superior $31 per-share all-cash bid, citing that escalation would render the deal "no longer financially attractive," per co-CEOs Ted Sarandos and Greg Peters.[1] This pivot hands control of key Warner assets like **HBO Max**, **CNN**, TBS, and TNT to Paramount Skydance, potentially creating a media behemoth with combined streaming subscribers exceeding 200 million (HBO Max ~100M + Paramount+ ~70M es
🔄 Updated: 2/27/2026, 1:40:55 AM
**NEWS UPDATE: Consumer Backlash Mounts as Netflix Bows Out of Warner Bros. Bid**
Consumers expressed widespread frustration on social media after Netflix dropped its $83 billion bid for Warner Bros., with #SaveHBO trending as over 150,000 users voiced fears of losing access to HBO originals under Paramount's $111 billion takeover, which includes spinning off CNN.[1][2] One viral post from a top Netflix viewer account lamented, "Netflix was our best shot at keeping HBO pure—now Ellison gets HBO, CNN, everything? Streaming just got worse for cord-cutters."[1] Paramount's David Ellison countered public jitters, stating the merger "delivers superior value" and would "benefit consumers" amid industry struggle
🔄 Updated: 2/27/2026, 1:50:55 AM
**Netflix has withdrawn its $83 billion bid for Warner Bros. Discovery after the company's board deemed Paramount Skydance's revised offer of $31 per share—valued at $111 billion including all assets—as "superior."[1][3]** Netflix co-CEOs Ted Sarandos and Greg Peters stated the deal was "no longer financially attractive" at the price required to match Paramount's bid, which included sweeteners like a $7 billion regulatory termination fee demonstrating confidence in Trump administration approval.[1][3] The decision clears the way for Paramount CEO David Ellison to acquire the entire company, including CNN, HBO, and cable networks, after WBD
🔄 Updated: 2/27/2026, 2:00:56 AM
**NEWS UPDATE: Netflix Bows Out, Paramount Poised to Acquire Warner Bros. Amid Global Media Shakeup**
Netflix co-CEOs Ted Sarandos and Greg Peters announced they will not match Paramount Skydance's superior $31-per-share bid—valuing Warner Bros. Discovery at $111 billion—ceding HBO, CNN, and cable assets like TNT to the deal, which executives claim will "benefit consumers and help boost the entertainment industry" still reeling from pandemic losses.[1][2] International regulators in Europe and Asia are bracing for antitrust scrutiny, with early responses from the UK's CMA and EU Commission signaling probes into potential market dominance in streaming and news, as the merger could consolidate 40% o
🔄 Updated: 2/27/2026, 2:10:54 AM
**NEWS UPDATE: Netflix Drops Warner Bros. Bid, Paving Way for Paramount Skydance Merger Amid Global Media Shakeup**
Netflix co-CEOs Ted Sarandos and Greg Peters announced late Thursday they will not match Paramount Skydance's superior $31 per share offer—valuing Warner Bros. Discovery at $111 billion—stating, "at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive."[1][2][3] The deal hands HBO and CNN assets to Paramount Chairman David Ellison, who hailed it as delivering "superior value, certainty and speed to closing," potentially reshaping global streaming with $57.5 billion in committed debt financing and a CNN spinoff.[1]
🔄 Updated: 2/27/2026, 2:20:54 AM
**NEWS UPDATE: Consumer Backlash Mounts as Netflix Bows Out, Paramount Eyes Warner Bros. Prize**
Consumers expressed shock and frustration online after Netflix dropped its $83 billion bid for Warner Bros. Discovery, with KTLA reporter David Lazarus noting on air, "I can't believe there's a conclusion to the saga," capturing widespread viewer disbelief aired just hours ago.[4] Social media buzzed with complaints over potential HBO integration into **Paramount Plus**, as one viewer quipped in live comments, "If you're co-CEO Ted Sarandos, you might be thinking to yourself, well, when it comes to HBO on Paramount Plus...?"—fearing content fragmentation and higher bundles amid the $111 billion Paramount dea
🔄 Updated: 2/27/2026, 2:30:55 AM
**LIVE NEWS UPDATE: Regulatory Scrutiny Intensifies as Netflix Exits Warner Bros. Race**
Warner Bros. Discovery's board declared Paramount Skydance's $31 per-share all-cash bid "superior" to Netflix's $82.7 billion deal, citing its "large regulatory termination fee" and quarterly "ticking fees" as key protections against antitrust hurdles[1][2][3]. Netflix co-CEOs Ted Sarandos and Greg Peters stated their original offer had a "clear path to regulatory approval," but declined to match due to financial concerns[1]. No formal government response has emerged, though both bids hinge on navigating the "fraught landscape" of U.S. regulators, with Paramount's mul