Netflix has made a final exit from the bidding process to acquire Warner Bros. Discovery, choosing not to respond to Paramount Skydance’s improved offer and formally withdrawing from the race.

On February 17, 2026, Warner Bros. Discovery’s board of directors assessed Paramount Skydance’s proposal to acquire 100% of the company’s equity as being on terms far more favorable than Netflix’s existing offer. Netflix had previously agreed to a merger valued at $27.75 per share—$82.7 billion in total—targeting only the studio and streaming assets.

By contrast, Paramount Skydance presented a new proposal on February 14, 2026, offering $31 per share—$110.9 billion in total—for all assets, including broadcast networks such as CNN. Under Warner Bros. Discovery’s formal notice, Netflix was granted a four-day priority period to respond and negotiate; however, on February 26, 2026, Netflix confirmed that it would not submit a revised offer.

In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters explained the withdrawal in straightforward terms, saying that the price required to match Paramount Skydance’s latest proposal was no longer financially attractive. Sarandos noted that while the deal had a clear path to securing regulatory approval, Netflix ultimately chose to adhere to its strict financial discipline. He characterized the Warner Bros. Discovery acquisition not as a strategic “must,” but as something that would have been “nice to do” only at the right price. Warner Bros. Discovery CEO David Zaslav, meanwhile, concluded that a deal with Paramount Skydance was the direction most likely to maximize shareholder value, despite potential regulatory hurdles.

Having stepped back from the acquisition battle, Netflix will restart its share repurchase program in line with its capital allocation policy. In addition, the company plans to invest $20 billion over the course of 2026 to expand its in-house content portfolio, including the production of high-quality films and series. The process for Paramount Skydance’s full acquisition of Warner Bros. Discovery is expected to be finalized sometime between September 30 and December 31, 2026.

Detailed documents and related disclosures associated with the merger can be viewed on the U.S. Securities and Exchange Commission (SEC) website, as well as on Netflix’s official investor relations page.

This article was translated from the original that appeared on INVEN.