New Delhi, Feb. 27 -- Netflix has dropped out of the deal to acquire Warner Bros Discovery after the WBD board on Thursday determined the bid of Paramount Skydance to be the superior offer.

Netflix's pullout from the deal - which faced a months-long three-pronged dilemma about who is going to acquire the studio and streaming assets of WBD - clears the path for Paramount Skydance to gain control of Warner Bros Discovery in a $111 billion historic deal.

"The transaction we negotiated would have created shareholder value with a clear path to regulatory approval," Netflix said in a statement on Thursday.

However, it said that it was declining to match Paramount Skydance's latest offer.

"However, we've always been disciplined, and at the p...