(C) Prestige Online

Netflix has officially pulled out of the race to acquire Warner Bros. Discovery (WBD), effectively ending a months-long bidding war that has reshaped the Hollywood landscape. On February 26, 2026, Netflix co-CEOs Ted Sarandos and Greg Peters announced that the company would not match a competing "superior" offer from Paramount Skydance.

"We believe we would have been strong stewards of Warner Bros.’ iconic brands," the co-CEOs stated. "However, this transaction was always about the right price. At the current valuation, it is no longer financially attractive."

The withdrawal comes after Paramount Skydance, led by David Ellison and backed by the massive capital of his father, Larry Ellison, submitted an all-cash bid of $31 per share. This surpassed Netflix's previous agreement of $27.75 per share, which was initially signed in December 2025.

With Netflix stepping aside, Paramount is set to acquire the entirety of WBD for a total enterprise value of $111 billion. This historic merger will bring franchises like Harry Potter, Game of Thrones, and the DC Universe under the same roof as Paramount’s Star Trek and Mission: Impossible. While the deal creates a new media titan, it remains subject to rigorous regulatory approval due to concerns over market consolidation in both the streaming and news sectors.