Paramount Skydance is now the likely owner of Warner Bros. Discovery

Netflix has announced it won't be providing a counteroffer to Warner Bros. Discovery after Paramount Skydance beat Netflix's offer by $25.7 billion.

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Jak Connor

Tech and Science Editor

Published Feb 27, 2026 8:10 AM CST

1-minute read time

TL;DR: Netflix has declined to match Paramount Skydance's $108.4 billion offer for Warner Bros. Discovery, allowing the latter to accept Paramount's superior bid, which exceeds Netflix's by $25.7 billion. Paramount also proposed significant regulatory and breakup fees to secure the deal.

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Netflix has announced it won't be beating Paramount's offer for Warner Bros. Discovery, which essentially means Warner Bros. Discovery is free to take Paramount Skydance's offer that was $25.7 billion more than Netflix's.

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Netflix and Warner Bros. Discovery announced that Netflix was acquiring many big parts of Warner Bros. Discovery, offering the company $82.7 billion back in December, 2025. Only a few weeks after Netflix made its offer public, Paramount Skydance made a competing offer of $108.4 billion, which equates to $25.7 billion more than Netflix's.

Additionally, Paramount Skydance targeted Warner Bros Discovery shareholders, urging them to reject the Netflix deal, and to add even more pressure to the decision, Paramount Skydance sued Warner Bros for allegedly failing to provide Paramount with the reasons why it rejected Paramount's offer. Now, Netflix has said it won't be matching Paramount's offer, nor will it be providing a counteroffer, and Warner Bros. Discovery's board has deemed Paramount's offer as a "Superior Proposal".

Paramount has also offered a $7 billion regulatory termination fee if the deal fails to meet regulatory standards, and a $2.8 billion breakup fee if Warner Bros. Discovery decides it is going to walk away from the deal with Netflix.