Netflix walked away because it chose not to match Paramount Skydance’s revised bid: Netflix’s co-CEOs said the price needed to keep the deal was no longer financially attractive. Warner Bros. Discovery (WBD) ended its Netflix agreement on February 27, 2026, and Paramount paid Netflix a $2.8 billion termination fee. The story did not end there: the Associated Press reported that Paramount’s acquisition of WBD closed on October 6, 2026.
What happened, and when?
- December 5, 2025: Netflix and WBD announced an agreement for Netflix to acquire WBD’s studio and streaming assets, not the entire company. The Associated Press later described Netflix’s offer as $27.75 per WBD share, or nearly $83 billion including debt. Associated Press
- February 24, 2026: WBD said Paramount’s revised proposal could reasonably be expected to lead to a Company Superior Proposal, but it had not yet made a final determination. WBD’s February 24 announcement
- February 26, 2026: WBD informed Netflix that its board had determined Paramount’s latest proposal was a Superior Proposal. Netflix declined to raise its offer. Netflix’s statement
- February 27, 2026: WBD terminated the Netflix agreement after Netflix waived its right to propose revisions. Paramount paid the $2.8 billion termination fee on WBD’s behalf; WBD also withdrew its Netflix proxy and canceled the shareholder meeting scheduled for March 20. WBD’s termination announcement
- October 6, 2026: The Associated Press reported that Paramount’s takeover of WBD had closed. Its October 7 report referred to the combined company as Skydance. Associated Press
Why did Netflix walk away?
Netflix’s co-CEOs, Ted Sarandos and Greg Peters, said the company had negotiated a transaction it believed would create shareholder value and had a clear path to regulatory approval. But they said matching Paramount’s latest offer would make the deal financially unattractive to Netflix. That is Netflix’s stated rationale, not an independent finding about what the assets were worth.
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“However, we’ve always been disciplined, and 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.”
They described Warner Bros. as a “nice to have” at the right price, rather than a “must have” at any price. The practical point is that Netflix did not consider owning the assets worth matching the terms Paramount put forward.
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What was Paramount’s “better offer”?
“Better” describes the proposal WBD’s board deemed superior under the merger agreement; it does not mean the competing offers covered the same assets or had identical terms. Netflix was pursuing WBD’s studio and streaming assets, while Paramount’s bid sought all of WBD. Associated Press
| Offer detail | Netflix agreement | Paramount revised proposal |
|---|---|---|
| Transaction scope | WBD’s studio and streaming assets, not all of WBD; Associated Press, February 2026 reporting. Source | All of WBD; Associated Press, February 2026 reporting. Source |
| Per-share amount | $27.75 per WBD share; Associated Press, 2026. Source | $31.00 per share in cash; WBD’s February 24, 2026 announcement. Source |
| Other stated terms | Nearly $83 billion including debt, as reported by the Associated Press in 2026. Source | A $0.25-per-share quarterly ticking fee beginning after September 30, 2026, and a $7 billion regulatory termination fee; WBD’s February 24, 2026 announcement. Paramount also agreed to pay the $2.8 billion fee WBD would owe Netflix if it ended the existing agreement. Source |
The headline per-share figures do not make the bids directly comparable: one covered selected assets and the other the whole company. The additional fees and protections formed part of Paramount’s revised terms; WBD’s February 24 statement about the proposal was preliminary, and the board made its final Superior Proposal determination on February 26.
What did the termination mean for Netflix and WBD?
WBD ended its existing agreement with Netflix after the board’s determination and Netflix’s decision not to revise its bid. Paramount then paid Netflix the $2.8 billion termination fee on WBD’s behalf, as WBD announced on February 27, 2026. That payment was a contractual consequence of ending the Netflix agreement, not the price Paramount paid for WBD. WBD’s announcement
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Did Paramount’s acquisition happen?
Yes. The Associated Press reported that Paramount’s takeover of WBD closed on October 6, 2026, and described the combined company as Skydance in its October 7 coverage. Associated Press
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Rank #3
- Maverick [Blu-ray]
- PHYSICAL_MOVIE
- warner home video
That closing does not settle what customers will experience. The AP described a unified streaming service as a future plan; in its October 7 report, the specific service, pricing, timing, and consumer effects remained unknown. The cited coverage also does not establish the long-term effects of the acquisition on competition, subscription prices, production jobs, or creative output.
Quick Recap
Rank #4
- Item name: The Maltese Falcon
- Product type: PHYSICAL MOVIE
- Brand: WB
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