Netflix won’t raise Warner Bros bid after rival offer

Netflix has declined to raise its offer for Warner Bros after being told Warner Bros. Discovery’s board now views Paramount Skydance’s latest proposal as a “Superior Proposal”.

The update was disclosed in a statement issued on 26 February 2026. It follows notice from Warner Bros. Discovery (WBD) to Netflix that Paramount Skydance (PSKY) had topped the existing merger agreement terms.

Why Netflix walked away

Co-CEOs Ted Sarandos and Greg Peters said the deal Netflix negotiated offered shareholder value and “a clear path to regulatory approval”. However, they said the price required to match Paramount Skydance’s latest offer was no longer financially attractive.

“We’ve always been disciplined,” the pair said. “At the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”

Ted Sarandos

Thanks to WBD leadership

Sarandos and Peters also thanked WBD executives and directors for what they described as “a fair and rigorous process”, naming David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the WBD board.

They said Netflix believed it would have been “strong stewards” of Warner Bros’ brands, but stressed the transaction was “a ‘nice to have’ at the right price, not a ‘must have’ at any price”.

Warner Bros. Discovery CEO David Zaslav

What Netflix says comes next

Netflix said its business remains “healthy, strong and growing organically”. The company said it expects to invest about $20 billion this year in films and series, and to expand its overall entertainment offering.

It also said it will resume its share repurchase program, consistent with its capital allocation policy.

Key points

• Netflix will not match Paramount Skydance’s latest bid for Warner Bros.
• WBD told Netflix its board considers PSKY’s proposal a “Superior Proposal”.
• Netflix said the price required to match is “no longer financially attractive”.
• The company reiterated a ~$20 billion content investment plan for the year and said share buybacks will resume.

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