Netflix pulls out of the race for Warner Bros., clearing the way for Paramount’s $111 Billion beal

A dramatic twist has reshaped the long-running battle for control of Warner Bros. Discovery: Netflix has stepped out of the contest, leaving Paramount Skydance free to finalize a $111 billion deal that could redraw the balance of power in Hollywood.

The group led by Ted Sarandos announced it would not match the latest $31-per-share offer submitted by its rival. “We have always been disciplined,” the company said, “but at the required price the transaction is no longer financially attractive.” Netflix had previously put forward an $82.7 billion agreement, including debt, focused on Warner Bros.’ studio and streaming assets. However, Paramount’s repeated counteroffers for the entire company had reopened negotiations.

Markets reacted swiftly: Netflix shares jumped as much as 13% in after-hours trading, signaling investor approval of the decision not to overextend. Warner Bros. shares fell, as expectations of a bidding war faded, while Paramount’s stock remained broadly unchanged.

For Warner Bros., the agreement with Paramount promises to create “tremendous value for shareholders,” according to CEO David Zaslav, who highlighted potential synergies among film libraries, cable networks such as CNN and TNT, and streaming platforms. Backed by substantial bank financing and personal guarantees tied to the Ellison family, the deal aims to build a new vertically integrated media powerhouse.

Yet the matter is far from settled. Antitrust concerns are mounting in Washington, where the Senate is set to reexamine the merger in the coming weeks amid criticism from Democratic lawmakers worried about reduced competition and higher prices for consumers.

Meanwhile, Netflix - now boasting more than 325 million subscribers worldwide - has chosen to focus on its core business, confirming plans to invest around $20 billion in content in 2026. The streaming wars continue, but without another blockbuster merger.

Andrea Pelucchi