Netflix said it would not submit a higher offer for Warner Bros. Discovery after the company’s board described Paramount Skydance’s latest offer as “superior.”

Paramount Skydance has emerged victorious in the battle to acquire Warner Bros Discovery after Netflix declined to raise its offer.

Several miles away from Burbank on Melrose Avenue, the champagne was literally being popped open as execs there celebrated their turn of fortune, and also breathed a sigh of relief that their long cam...