'No longer financially attractive': Netflix quits Warner Bros. Discovery bid, clears path for Paramount Skydance

Netflix declined to match Paramount Skydance’s revised $111 billion bid to acquire one of Hollywood’s most storied studios.

The streaming giant said the deal was no longer financially viable, despite its earlier interest in acquiring Warner Bros. Discovery, which had put itself up for sale last year.

“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, 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,” Netflix said in a statement.

Netflix had initially offered $82.7 billion for Warner Bros. Discovery, including its iconic film and television studios and premium platforms like HBO and HBO Max.

The proposed merger is poised to become one of the largest entertainment deals in history and could significantly reshape Hollywood’s media landscape.

Netflix stepped back from the deal just hours after co-CEO Ted Sarandos visited the White House on Thursday, BBC reported.

California Attorney General Rob Bonta said the deal is not yet final, as both Warner Bros. Discovery and Paramount Skydance must still clear regulatory scrutiny.

Paramount Skydance will require approval from the U.S. Department of Justice and European regulators before completing the acquisition.