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Streaming company Netflix has pulled out of its deal to acquire Warner Bros. Discovery's film business and its HBO Max service. This was reported by The New York Times on February 27, citing a joint statement from Netflix co-CEOs Ted Sorandos and Greg Peters.
The agreement between Netflix and Warner Bros. Discovery was signed in December 2025. Under its terms, Netflix was to pay $27.75 per share, valuing Warner Bros. Discovery, including debt, at $82.7 billion.
However, the Paramount conglomerate later countered with a proposal. The company expressed its willingness to pay up to $31 per share, which would have valued the deal at $111 billion. In response to the new offer, Warner Bros. Discovery offered Netflix improved terms.
In a joint statement, Netflix executives noted that following the emergence of an alternative offer, the deal "no longer appears financially attractive." As a result, the company decided to withdraw from the agreement.
According to The Hollywood Reporter, if the deal with Paramount is completed, Netflix will be required to pay $2.8 billion in compensation. Warner Bros. Discovery will be required to pay this amount for terminating the previously concluded merger agreement.
Warner Bros. Discovery owns a vast archive of films and television series created in Hollywood over nearly 100 years. The company's portfolio includes the Harry Potter, Lord of the Rings, and Game of Thrones franchises, as well as the HBO Max streaming service and the CNN and Discovery channels.
Since 2025, the Paramount conglomerate has been owned by the Ellison family. Larry Ellison is the founder of the technology corporation Oracle, a major player in the database and cloud computing market and a US government contractor. Oracle, among other things, supplies IT infrastructure to the Pentagon. Larry Ellison publicly supported Donald Trump and donated to his election campaign.
If the new deal is reached, it will need to be approved by antitrust regulators. If this happens, Paramount will, among other things, gain control of CNN, which Donald Trump has previously accused of spreading false information about him and his administration.
