Netflix withdraws from bid for Warner Bros. Discovery

Netflix said on Thursday that it has decided to withdraw from its planned purchase of Warner Bros. Discovery. The company confirmed it would not submit a higher offer after Paramount Skydance, led by David Ellison, increased its bid to $111 billion. Netflix stated that the revised terms no longer made financial sense for the company.

The streaming giant had originally agreed in December to pay $83 billion for major parts of Warner Bros. Discovery, including HBO and the Warner Bros. film studio. The acquisition was expected to strengthen Netflix’s influence in Hollywood and expand its presence in traditional film and television production. However, once Paramount raised its offer and Warner described it as the better proposal, Netflix chose not to continue the bidding process.

David Ellison, whose offer is supported by his father, Oracle founder Larry Ellison, has remained determined to secure the deal. Paramount had previously submitted an offer of around $108 billion before increasing it. After reviewing the updated proposal, Warner Bros. Discovery gave Netflix a short period to respond, but the company ultimately stepped away.

The decision appeared to reassure investors. Since the original agreement was announced, Netflix’s market value had fallen sharply, as some shareholders questioned the risks of buying a legacy entertainment company. After news broke that Netflix would not raise its bid, the company’s stock price rose in after-hours trading.

Any final agreement to purchase Warner Bros. Discovery will still require approval from regulators in the United States and Europe, where antitrust authorities are expected to closely review the transaction. If regulatory approval is not granted, another bidder could potentially re-enter the picture.

For now, though, Ellison seems well positioned to gain control of Warner Bros. Discovery’s major assets, including prominent film studios, the HBO television network, and the global news channel CNN.