Netflix Backs Out of Warner Bros. Discovery Deal as Paramount Moves Closer to Acquiring AEW’s Broadcast Partner

The media landscape surrounding AEW’s longtime broadcast home could be on the verge of a major shakeup.

Netflix has officially stepped away from its attempt to acquire Warner Bros. Discovery, leaving Paramount as the frontrunner in the high-stakes bidding war. According to financial reports, Paramount upped its offer (via CNBC) from $30 to $31 per share — a modest increase on paper, but enough to push Netflix out of the race.

Netflix’s proposal had already trailed Paramount’s previous bid, and the latest bump appears to have sealed the deal. Unlike the structure reportedly tied to Netflix’s approach, Paramount’s offer would bring all of Warner Bros. Discovery’s assets under its control, including its Discovery networks and the company’s expansive TV portfolio.

There is still a regulatory process to navigate before anything becomes official, but if approved, WBD would soon sit under the same corporate umbrella as CBS, Pluto TV, and Paramount+. That streaming platform already houses UFC content — notable given that UFC is part of TKO Group Holdings alongside WWE.

The fallout from Netflix’s withdrawal isn’t cheap. Warner Bros. Discovery will reportedly owe Netflix a $2.8 billion breakup fee, a cost Paramount is expected to absorb as part of its acquisition package. In addition, Paramount’s revised offer includes a hefty $7 billion breakup clause should this new deal collapse.

What This Could Mean for AEW

For wrestling fans, the biggest question is how this impacts All Elite Wrestling.

AEW currently airs its weekly programming on TNT and TBS, both WBD networks, and streams content on HBO Max. Reports have also indicated that WBD owns a minority stake in AEW, further tying the promotion to the company’s future.

Under a Netflix-WBD scenario, CEO Ted Sarandos had indicated that Netflix would have remained separate from WBD’s streaming operations. Paramount CEO David Ellison, however, has not publicly detailed how he would handle HBO Max if the acquisition goes through.

That leaves AEW’s long-term broadcast and streaming future somewhat uncertain — though not necessarily in danger. Paramount’s portfolio is deeply entrenched in sports and combat programming, thanks in part to its relationship with UFC via Paramount+. Whether that synergy could extend into professional wrestling in a more direct way remains to be seen.

For now, AEW remains firmly planted on TNT, TBS, and HBO Max. But with corporate dominoes starting to fall, the wrestling world will be watching closely to see if this media merger reshapes the playing field.