The management of Netflix noted that considering the amount required to match the latest offer from Paramount Skydance, the deal ceased to be profitable. They characterized the potential acquisition as a "nice addition," but not vital.
After the announcement of its exit from the race, Netflix's shares rose by 8%, according to Bloomberg.
Background
For several months, Netflix and Paramount competed for control over Warner Bros. On December 5, 2025, Netflix announced plans to acquire Warner Bros. and HBO Max for $82.7 billion, which corresponds to $27.75 per share. Paramount, in turn, initially offered to buy the entire Warner Bros., including channels such as CNN, TNT Sports, and Discovery, for $108 billion ($30 per share), and then raised the price to $31 per share. Additionally, Paramount Skydance agreed to cover the $2.8 billion penalty that Warner Bros. would have to pay to Netflix in the event of terminating the previous agreement.
