Updated February 26, 2026 at 5:12 PM CST
The Warner Bros. Discovery board announced late Thursday afternoon that Paramount's sweetened bid to buy the entire company is "superior" to an $83 billion deal it had struck with Netflix for the purchase of its streaming services, studios, and intellectual property.
Netflix says it is pulling out of the contest rather than try to top Paramount's offer.
"We've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid," the streaming giant said in a statement.
Warner had rejected so many offers from Paramount that it seemed as though it would be a fruitless endeavor. Speaking on the red carpet for the BAFTA film awards last weekend, Netflix CEO Ted Sarandos dared Paramount to stop making its case publicly and start ponying up cash.
'If you wanna try and outbid our deal … just make a better deal. Just put a better deal on the table," Sarandos told the trade publication Deadline Hollywood.
Netflix promised that Warner Bros. would operate as an independent studio and keep showing its movies in theaters.
But the political realities, combined with Paramount's owners' relentless drive to expand their entertainment holdings, seem to have prevailed.
Paramount previously bid for all of Warner — including its cable channels such as CNN, TBS, and Discovery — in a deal valued at $108 billion. Earlier this week, Paramount unveiled a fresh proposal increasing its bid by a dollar a share.
On Thursday, hours before the Warner announcement, Sarandos headed to the White House to meet Trump administration officials to make his case for the deal.
The meetings, leaked Wednesday to political and entertainment media outlets, were confirmed by a White House official who spoke on condition he not be named, as he was not authorized to speak about them publicly.
President Trump was not among those who met with Sarandos, the official said.
While Netflix's courtship of Warner stirred antitrust concerns, the Paramount deal is likely to face a significant antitrust review from the U.S. Justice Department, given the combination of major entertainment assets. Paramount owns CBS and the streamer Paramount Plus, in addition to Comedy Central, Nickelodeon and other cable channels.
The offer from Paramount CEO David Ellison relies on the fortune of his father, Oracle co-founder Larry Ellison. And David Ellison has argued to shareholders that his company would have a smoother path to regulatory approval.
Not unnoticed: the Ellisons' warm ties to Trump world.
Larry Ellison is a financial backer of the president.
David Ellison was photographed offering a MAGA-friendly thumbs-up before the State of the Union address with one of the president's key Congressional allies: U.S. Senator Lindsey Graham of South Carolina, a Republican.
Trump has praised changes to CBS News made under David Ellison's pick for editor in chief, Bari Weiss.
The chair of the Federal Communications Commission, Brendan Carr, told Semafor Wednesday that he was pleased by the news division's direction under Weiss. She has criticized much of the mainstream media as being too reflexively liberal and anti-Trump.
"I think they're doing a great job," Carr said at a Semafor conference on trust and the media Wednesday. As Semafor noted, Carr previously lauded CBS by saying it "agreed to return to more fact-based, unbiased reporting."
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