Netflix backs down, Paramount now likely to acquire Warner Bros.
Paramount is now on track to acquire Warner Brothers Discovery, as Netflix has announced it will not provide a competing offer to purchase the studio.HBO Max could soon become property of Paramount.Warner Bros. Discovery has been working to find the right buyer for months now. In October 2025, it was even reported that Apple TV was among the companies in discussions with Warner Bros. executives regarding a potential purchase agreement.Two months later, Netflix emerged as the top contender and potential new owner of Warner Bros. Discovery. However, the enthusiasm was short-lived, as Paramount offered to buy the venerable Warner Bros studios and its extensive library for $31 per share, as part of an all-cash deal. Continue Reading on AppleInsider | Discuss on our Forums
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Netflix backs down, Paramount now likely to acquire Warner Bros.
[Image: Marko Zivkovic's profile picture]
Marko Zivkovic
Thu Feb 26 2026, 07:32 PM EST
2 minute read
HBO Max could soon become property of Paramount.
Paramount is now on track to acquire Warner Brothers Discovery, as Netflix has announced it will not provide a competing offer to purchase the studio.
Warner Bros. Discovery has been working to find the right buyer for months now. In October 2025, it was even reported that Apple TV was among the companies in discussions with Warner Bros. executives regarding a potential purchase agreement.
Two months later, Netflix emerged as the top contender and potential new owner of Warner Bros. Discovery. However, the enthusiasm was short-lived, as Paramount offered to buy the venerable Warner Bros studios and its extensive library for $31 per share, as part of an all-cash deal.
Netflix, meanwhile, was only willing to pay $27.75 per share, and its deal was not all cash. On Thursday, the streaming company revealed it would not be increasing its bid for Warner Bros. Discovery to match Paramount's offer.
In a statement available on the Netflix website, co-CEOs Ted Sarandos and Greg Peters said that their original offer to buy Warner Bros. "would have created shareholder value with a clear path to regulatory approval." However, they added that "at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive."
Paramount came out with a statement of its own, detailing the specifics of its planned Warner Bros. Discovery acquisition. The studio also said that it will "engage constructively with WBD to deliver the benefits of Paramount's proposal to WBD shareholders, the creative community, and consumers."
Along with the $ 31-per-share fee, Paramount has also agreed to pay a $7 billion fee if the transaction does not close due to regulatory issues. Additionally, Paramount is willing to cover a $2.8 billion termination fee, which Warner Brothers would have to pay to Netflix to end its existing Netflix merger.
Warner Bros. Discovery Board of Directors recognized Paramount's bid as a "superior proposal" under the current Warner Bros. merger agreement with Netflix.
Overall, it looks as though Paramount will buy Warner Bros. Discovery, unless regulatory compliance issues prevent the deal from going through. Comcast and Amazon were also in the running to purchase Warner Bros. at one point, but it appears as though neither has submitted an offer matching Paramount's.
Regardless of the outcome, Apple most likely continue to work with Netflix, according to the iPhone maker's services chief, Eddy Cue. On Thursday, Apple also announced that Netflix's F1 'Drive to Survive' would be available to stream on the Apple TV platform.
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[Original source](https://appleinsider.com/articles/26/02/27/netflix-backs-down-paramount-now-likely-to-acquire-warner-bros?utm_source=rss)