Gotrade News - The tug-of-war over Warner Bros Discovery has finally reached its endgame. Paramount Skydance locked in the acquisition at roughly $108 billion after Netflix officially bowed out of the bidding on Thursday (27/02).
Netflix said that bumping up its offer simply didn't make financial sense anymore. The move came after Warner Bros Discovery's board labeled Paramount Skydance's latest proposal as the "superior" bid over Netflix's earlier deal.
Key Takeaways
- Paramount Skydance won the Warner Bros Discovery takeover at $31 per share in cash, a $1 bump from its previous offer
- Netflix stock jumped 10.2% in after-hours trading as investors cheered the company's spending discipline
- If greenlit by regulators, Paramount would absorb HBO Max, CNN, and Warner Bros' entire media empire, potentially reshaping the U.S. entertainment landscape
According to Seeking Alpha, Paramount Skydance's final bid came in at $31 per share in cash. That's a dollar more than its already competitive earlier offer.
Paramount also agreed to cough up a hefty $7 billion penalty if the deal falls apart. On top of that, the company will cover the $2.8 billion breakup fee that Warner Bros owes Netflix for pulling the plug on their original agreement.
Netflix co-CEOs Ted Sarandos and Greg Peters stressed that they stayed disciplined throughout the process. As reported by BBC, the pair described the Warner Bros acquisition as "a nice to have at the right price, not a must have at any price."
Market Reaction and What's Next for Netflix
Wall Street's response to Netflix walking away was overwhelmingly positive. According to Seeking Alpha, Netflix shares surged 10.2% in after-hours trading, while Warner Bros Discovery dipped 2.2%.
Investors clearly liked the idea of Netflix not overextending itself on a massive buyout. The company announced it will pour roughly $20 billion into quality films and series this year, and it's also bringing back its share repurchase program.
Meanwhile, Paramount Skydance climbed 3.8% in after-hours trading. CEO David Ellison welcomed the Warner Bros board's decision, calling his company's offer one that delivers "superior value, certainty, and speed to closing" for shareholders.
What This Means for the U.S. Media Landscape
If regulators give the thumbs up, Paramount would fold HBO Max subscribers into its existing portfolio. The deal also hands Paramount control of CNN, Food Network, and a slate of sports properties under the Warner Bros umbrella.
This would turn Paramount into a media behemoth with brands spanning Nickelodeon, CBS, Comedy Central, and now CNN. The sheer scale of the combined entity could shake up competition across the U.S. entertainment and news industry in a big way.
It's worth noting that CNN's future is one of the biggest question marks hanging over this deal. According to BBC, President Trump previously said in December that CNN should be sold off as part of any Warner Bros transaction.
Paramount Skydance is led by David Ellison, son of tech billionaire Larry Ellison who founded Oracle. The company's perceived political ties to the Trump administration have raised eyebrows among media industry watchers.
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Reference:
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BBC, Netflix drops bid for Warner Bros, clearing way for Paramount takeover. Accessed on February 27, 2026
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Seeking Alpha, Paramount wins the bidding war for Warner Bros. as Netflix walks away. Accessed on February 27, 2026
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