Netflix announced Thursday that it will not match Paramount Skydance’s latest $31 per share offer for Warner Bros. Discovery, effectively withdrawing from the bidding process. The decision makes financial sense, given WBD’s $40 billion debt load, which rendered the deal financially unviable for Netflix. This ends a brief but high-profile bidding war that began with Netflix’s unsolicited proposal.

Paramount Skydance, supported by David Ellison of Skydance Media, now has a clear path to acquire the struggling media conglomerate, which includes HBO Max, CNN, and Warner Bros. film studios. The acquisition could consolidate major media assets under Ellison family influence, notable as prominent Trump donors, potentially reshaping content and management strategies within the combined entity. Market observers note that Polymarket currently gives a 72% probability of the deal closing by year-end, signaling strong confidence in the transaction’s completion.