Netflix just pulled the plug on its bid to acquire Warner Bros Discovery after Paramount raised its all-cash offer to $31 per share. The move ends weeks of high-stakes streaming drama, with Netflix deciding the price tag was too steep to justify.
Paramount will pay a $2.8 billion termination fee, covering the penalty Warner Bros Discovery owes Netflix for ditching their earlier merger agreement. The new offer from Paramount includes extra perks: a ticking fee and debt financing coverage, sweetening the deal for WBD‘s board. After reviewing the numbers, WBD declared Paramount‘s latest play ‘superior’ and walked away from the Netflix deal.
Why gamers and streamers should care
This isn’t just Wall Street drama. If Netflix had landed Warner Bros Discovery, it would have grabbed not just the film studio and streaming businesses, but also the games division. That could have meant a major shakeup for Netflix’s gaming push-think more exclusive IPs and bigger budgets. Instead, Paramount now has a shot at folding WBD‘s gaming arm into its own plans, which could impact future game releases, licensing, and streaming bundles.
For viewers, this means no sudden flood of Warner Bros classics or DC movies showing up on Netflix. For gamers, don’t expect a sudden boost in Netflix’s game catalog from WB’s franchises. The competitive landscape for streaming and gaming stays fragmented, at least for now.
How the bidding war played out
Netflix first made its play in December 2025, offering $27.75 in cash and $4.50 in Netflix stock per WBD share-totaling around $82.7 billion. The deal would have given Netflix control over WBD‘s film studio, streaming services, and games division, but not its cable channels. Paramount countered with a $108.4 billion hostile takeover, raising its per-share offer to $30 in cash. After some legal wrangling and boardroom reviews, Paramount sweetened the deal further, and WBD finally bit.
The Netflix co-CEOs, Ted Sarandos and Greg Peters, said the deal was always a “nice to have” at the right price, not a “must have” at any price. They claim Netflix is still on track to invest $20 billion in films and series this year, and will resume its share buyback program.
The bottom line
- No Warner Bros games or movies coming to Netflix anytime soon.
- Paramount now has a shot at expanding its own gaming and streaming lineup with WBD’s assets.
- Netflix stays focused on organic growth and original content, not mega-mergers.