Paramount Wins $111 Billion Warner Bros. Buyout as Netflix Steps Back

Paramount has won the fight to buy Warner Bros. Discovery. Netflix dropped out of the bidding war on Thursday. This ends one of Hollywood’s most exciting takeover battles in years.

Netflix said it would not raise its offer. Warner Bros. Discovery’s board called Paramount’s $111 billion bid superior. The streaming giant explained that matching Paramount’s price made the deal no longer financially attractive. Netflix believed its own offer would create value for shareholders, but the higher cost changed everything.

This victory goes to Paramount CEO David Ellison. His company will now buy all of Warner Bros. Discovery. That includes Warner Bros. studios, HBO, HBO Max, CNN, and cable channels like TBS, TNT, and Discovery. Paramount’s bid values Warner Bros. Discovery at $31 per share. It also means taking on about $33 billion in debt.

The road to this deal was not easy. It started with multiple rejections. Paramount made hostile bids for Warner Bros. Discovery in December 2025. This came right after Netflix announced its $82.7 billion deal to buy Warner Bros. Discovery’s streaming and studio assets.

Paramount Wins $111 Billion Warner Bros. Buyout

Warner Bros. Discovery’s board rejected Paramount’s first offers many times. They publicly supported the Netflix deal instead. Paramount’s initial bid was $108.4 billion for the whole company. That was more than Netflix offered, but Warner Bros. Discovery did not agree.

Paramount did not give up. The company kept raising its offer. By February 24, it submitted a new one at $31 per share. This brought the total to $111 billion. Things changed fast after that. On February 26, Warner Bros. Discovery’s board said Paramount’s offer was superior. They gave Netflix four business days to match it.

So why did Netflix walk away, and why did Paramount win? Netflix co-CEOs Ted Sarandos and Greg Peters said the company has always been disciplined. They would not overpay just to win. At the price needed to match Paramount, the numbers did not add up.

Netflix’s deal was only for Warner Bros. studios, HBO, and HBO Max. It did not include cable networks. Netflix wanted Warner Bros. Discovery’s content library and production skills to make its streaming service stronger. But it had no interest in traditional TV channels like CNN or TNT.

Paramount’s offer covers everything. That makes it worth more to Warner Bros. Discovery shareholders. But it was too expensive for Netflix. On top of the higher price, Paramount added protections that made it hard for Warner Bros. Discovery to say no. Paramount agreed to pay a $7 billion reverse termination fee if regulators block the deal. It also includes the $2.8 billion breakup fee that Warner Bros. Discovery owes Netflix for ending their agreement.

The bid has strong backing. Larry Ellison, Oracle’s executive chairman and David Ellison’s father, is committing $45.7 billion in equity. Banks like Bank of America, Citi, and Apollo are providing $57.5 billion in debt financing.

The deal still needs approval from shareholders. A vote is set for March 20. With Netflix out and no other bidders, Paramount is almost sure to succeed. The merger will join two of Hollywood’s biggest studios. This raises worries about job cuts and more consolidation in the industry.

Markets reacted positively. Netflix’s stock jumped 10% in after-hours trading. Investors like that Netflix avoided an expensive buy. Paramount shares rose 4.5%. Securing a major studio strengthens Paramount’s place in entertainment.

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