Paramount increases offer for WBD acquisition, Netflix withdraws

WBD announced on Thursday that its board of directors, after consulting with independent financial and legal advisers, determined that the previously disclosed proposal from Paramount Skydance constitutes a “Superior Proposal” as defined in WBD’s merger agreement with Netflix.

As announced by WBD on Tuesday (24 February), the Paramount Skydance proposal comprises a purchase price of 31.00 US dollars per share of WBD in cash, plus ongoing payments of 0.25 US dollars per share per quarter commencing after 30 September 2026, as well as a regulatory termination fee of 7 billion US dollars payable by Paramount Skydance should the transaction fail to close due to regulatory issues.

The new Paramount Skydance acquisition offer values WBD at approximately 111 billion US dollars. Netflix, the world’s largest streaming company based on subscriber numbers, subsequently announced its withdrawal from the competition.

“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we have always been disciplined, and given the value required to match Paramount Skydance’s latest acquisition offer, the deal is no longer financially attractive, so we are declining to match Paramount Skydance’s offer,” Netflix stated in a response from its co-CEOs Ted Sarandos and Greg Peters.

Netflix shocked Hollywood on 5 December 2025 by announcing a 82.7 billion US dollar agreement to acquire WBD. Paramount Skydance subsequently made an aggressive counteroffer, elevating the merger into an increasingly contentious national issue.

Unlike the Netflix agreement, which encompasses WBD’s film studio and streaming service whilst separating its cable division into a new public company, the Paramount Skydance offer encompasses WBD in its entirety.