Netflix is no longer pursuing the acquisition of Warner Bros. Discovery, ending what could have been one of the largest media mergers in recent history.
After previously agreeing to an $83 billion deal in December, Netflix has officially declined to raise its offer following a competing proposal from Paramount Skydance. Warner Bros. Discovery’s board determined that Paramount Skydance’s revised bid qualified as a “Superior Proposal” under the existing merger agreement.
Rather than entering a bidding war, Netflix stepped aside.
Netflix says the price no longer makes sense
In a statement, co-CEOs Ted Sarandos and Greg Peters made it clear that discipline drove the decision.
According to leadership, the original transaction would have delivered shareholder value with a clean path to regulatory approval. However, matching Paramount Skydance’s latest offer would have pushed the acquisition beyond what Netflix considers financially attractive.
Executives reportedly viewed Warner Bros. Discovery as a strategic opportunity at the right valuation, not an asset worth pursuing at any cost.
That distinction matters.
What this means for HBO and the studio business
Had the deal closed, Netflix would have gained control of HBO along with the Warner Bros. film and television studios. The acquisition would have dramatically reshaped the streaming and studio landscape by combining a technology-driven platform with a legacy content powerhouse.
Now, instead of a Silicon Valley style streaming giant absorbing a traditional studio, the likely outcome points toward consolidation between established media players.
The narrative shifts from tech disruption to legacy media alignment.
Apple and Netflix align on Formula 1 content
Interestingly, the same day the acquisition news broke, Netflix and Apple announced a content partnership around Formula 1.
The next season of Drive to Survive will be available on Apple TV in the United States. Additionally, the upcoming F1 Canadian Grand Prix will stream on both platforms, signaling a cooperative strategy even as major merger talks unfold elsewhere in the industry.
A strategic reset for Netflix
By walking away, Netflix avoids overpaying in a heated bidding environment. The company preserves capital and flexibility while competitors navigate complex merger structures.
In today’s media landscape, restraint can be as powerful as expansion.
