Paramount Skydance has cleared a major hurdle in its bid to acquire Warner Bros Discovery after Netflix walked away from the fight, sending Paramount stock up 6% in after-hours trading.
Paramount has won the bidding war for Warner Bros. after Netflix withdrew, saying that the deal was no longer financially attractive.
Paramount will now own the following:
— HBO / HBO Max
— CNN
— CBS
— DC Studios
— Cartoon Network
— Adult Swim
— Paramount+
— Nickelodeon… pic.twitter.com/utXHZ33Hdn— FearBuck (@FearedBuck) February 26, 2026
Netflix confirmed Thursday it would not match Paramount’s $31-a-share offer after WBD’s board declared it “superior.” Netflix co-CEOs Ted Sarandos and Greg Peters said the price made the deal “no longer financially attractive.”
The decision ends months of back-and-forth bidding that began when Paramount first approached WBD in September.
Paramount Skydance Corporation Class B Common Stock, PSKY
Paramount’s $111bn offer covers the full WBD business — HBO, CNN, Harry Potter, Batman, and more. Netflix’s original $83bn deal, struck in December, only covered WBD’s studio and streaming assets.
The Ellisons, who combined Skydance and Paramount last year, would gain control of CBS News, 60 Minutes, and CNN under the proposed merger.
WBD CEO David Zaslav welcomed the deal, saying it “will create tremendous value for our shareholders.”
Netflix stock jumped 8.5% in post-market trading. Investors appeared relieved the streamer walked away from a deal that carried heavy antitrust risk.
The deal is far from done. It needs sign-off from the US Department of Justice and European regulators.
California Attorney General Rob Bonta said his office has an open investigation and intends to be “vigorous” in its review. “Paramount/Warner Bros is not a done deal,” he posted on social media.
Paramount sweetened its offer by $1 per share compared to its December bid, added a $0.25-per-share quarterly fee if the deal doesn’t close after September, and offered a $7bn break fee if regulators block it.
Paramount also agreed to cover the $2.8bn termination fee WBD owes Netflix if it exits the original agreement.
Employees at CBS News and WBD reacted with alarm to the news. Workers fear merging two major newsrooms will lead to job cuts as overlapping roles are eliminated.
Some staff expressed concern about Bari Weiss, appointed CBS News editor-in-chief last October, potentially taking a bigger role. Weiss has no prior television experience and her tenure has been described as uneven.
One CBS News producer warned the merger would be “a disaster for the people who work at both companies.”
Seth Stern of the Freedom of the Press Foundation was sharply critical, warning that Ellison would prioritize corporate interests over press freedom.
Politics has also played a role. Trump, a Larry Ellison supporter, weighed in on the bidding multiple times. David Ellison attended Trump’s State of the Union address Tuesday as a guest of Senator Lindsey Graham.
WBD is scheduled to hold a global town hall for employees Friday morning. In a memo Thursday, CNN chief Mark Thompson urged staff not to jump to conclusions.
Paramount stock was up 6% in after-hours trading at the time of the announcement.
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