Paramount Set For $111bn Warner Bros Takeover as Netflix Withdraws Bid

Paramount is poised to acquire Warner Bros Discovery in a deal valued at approximately $111bn (£82.2bn), after Netflix withdrew from the bidding process for one of Hollywood’s most storied studios.

Warner Bros, which formally put itself up for sale last year, announced on Thursday that Paramount’s revised offer was “superior” to Netflix’s proposal. The streaming giant subsequently declined to increase its bid.

Netflix executives said the company stepped back after determining that matching the new offer was no longer financially viable.

“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” Netflix co-chief executives Ted Sarandos and Greg Peters said in a joint statement.

“However, we’ve always been disciplined. This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” they added.

Last December, Warner Bros. Discovery agreed to a takeover proposal from Netflix for some of its assets, valued at roughly $82bn (£61bn), including debt.

Paramount later entered the fray with a rival bid, initially rejected by Warner Bros. However, the studio confirmed that an improved proposal, boosted by $1 per share earlier this week, ultimately secured the board’s backing.

If completed, the takeover would see Paramount Global assume control of Warner Bros’ iconic film studio and extensive media networks. Analysts say the transaction could significantly reshape the global media and entertainment landscape, consolidating traditional studio power with evolving streaming ambitions.

The announcement came hours after Sarandos visited the White House on Thursday, though no official link has been made between the visit and the acquisition process.

Regulatory approvals are expected to be the next major hurdle as the deal progresses.