Streaming giant Netflix said Thursday it was refusing to outbid Paramount Skydance to buy the Warner Bros. film and television group. The American media landscape could be redesigned by this acquisition.
Published on: 02/27/2026 - 05:16
Netflix declared on Thursday February 26 that it refused to raise its offer to buy the cinema and television group Warner Bros Discovery (WBD) against that of its competitor Paramount Skydance, considering that the operation was no longer financially attractive. This is a major twist in this twisted case which has lasted for more than five months.
Paramount Skydance, the first to submit a takeover proposal in September, had never been considered a favorite until now. This should bring the famous Hollywood studio Warner Bros, as well as the streaming platform HBO Max and a group of television channels, including CNN, into the hands of Paramount, thus reshaping the American media landscape.
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WBD has set March 20 as the date of the extraordinary general meeting at which shareholders will have to determine the future of the group. After a series of offers and counter-offers, it was ultimately the latest version of Paramount Skydance (PSKY), submitted at the beginning of the week, which won. PSKY had raised its proposal to 31 dollars per WBD share, compared to 30 until now. Including WBD's debt, this values the target at around $110 billion.
First development, Thursday: the WBD board of directors considered that this version was “superior”, but while indicating that it would continue to recommend that of Netflix. But a few minutes later, Netflix announced that it was “refusing to align with” Paramount Skydance’s offer. “We have always been disciplined,” explained the board of directors of the world number one streaming company, “But at the price necessary to align with Paramount Skydance's latest offer, this transaction is no longer financially attractive” for the group.
Personal support from Larry Ellison
At the beginning of December, Netflix and Warner Bros. Discovery announced a takeover agreement validated by the two councils. It only planned, however, the acquisition of part of WBD, namely mainly the film and television studio Warner Bros and the streaming platform HBO Max. The rest, mainly television channels including CNN and Discovery, were to be housed in a new company called Discovery Global, which was listed on the stock market. Netflix offered $82.7 billion for this reduced scope.
Paramount Skydance wants to take control of the entire group. This operation will require an atypical financial package and the personal support of Larry Ellison, founder of the Oracle group and father of the boss of Paramount Skydance, David Ellison. PSKY is thus preparing to absorb a company that weighs no less than six times its own market capitalization and will have to take on massive debt to do so. In addition, Paramount Skydance has agreed to pay Warner Bros. Discovery the $2.8 billion breakup fee that WBD promised Netflix in the event of their union not consummating.
Paramount Skydance considers its proposal more likely to be authorized by regulators than that of Netflix. A thesis contested by Netflix, which accused PSKY of having “misrepresented” the validation process by regulators.
Investors relieved
Despite this setback, investors welcomed Netflix's withdrawal from a file that they viewed unfavorably, with many believing that it risked paying too much for WBD. In electronic trading after the close on Wall Street, the streaming giant's action gained almost 10%.
While it has attractive assets, Warner Bros. Discovery is currently on an uncertain trajectory. It published, on Thursday, a falling turnover (-5%) for 2025. The slowdown, moreover, accelerated in the fourth quarter (-6%). Streaming continues to grow and the group now has 131.6 million subscribers worldwide, or 14.7 million more than a year ago, but its costs are growing more quickly, which has contracted its margins.
The Warner Bros studio is doing well, but the group remains weighed down by its traditional television activity, whose revenues and profits are inevitably crumbling. Its model is also quite close to that of Paramount Skydance, which is also trying to reinvent itself by playing on its streaming platform Paramount+ and its studio Paramount to compensate for the decline in classic television.
With AFP
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