Netflix has pulled out of its bid to acquire Warner Bros Discovery, paving the way for Paramount Skydance to secure a deal reportedly worth around $111bn (£82.2bn).
Paramount’s winning bid
Warner Bros, which listed itself for sale last year, confirmed that Paramount’s latest offer was “superior” to Netflix’s, which declined to increase its proposal. Netflix executives cited the deal as “no longer financially attractive” at the higher price.
The acquisition would give Paramount control over Warner Bros’ iconic studio, films, and media networks, potentially reshaping the media landscape.
Regulatory scrutiny
The deal requires approval from multiple regulators, including the US Department of Justice, California authorities, and European bodies. California Attorney General Rob Bonta emphasised that regulatory review remains ongoing, noting the entertainment sector’s importance to the state’s economy.
Political and financial context
Paramount’s bid is backed by tech billionaire Larry Ellison and led by his son David Ellison. The funding has drawn scrutiny due to Ellison’s political ties to former US President Donald Trump, who has previously criticised CNN, a Warner Bros asset.
Concerns have also arisen over Paramount’s prior support from Jared Kushner’s investment firm and negotiations with the FCC for other media acquisitions, including the CBS News settlement.
Implications for Hollywood and media
If approved, Paramount would integrate Warner Bros’ HBO Max streaming subscribers and take ownership of CNN, the Food Network, and sports offerings. Paramount’s existing network portfolio includes CBS, Nickelodeon, and Comedy Central.
Critics warn that while Netflix could have threatened traditional cinema, Paramount’s political ties and consolidation could impact editorial independence at major media outlets like CNN. Across Hollywood, job cuts and restructuring are expected following the merger.
Financial terms
Paramount raised its offer to $31 per share in cash, up from $30, for the full Warner Bros takeover. The deal also includes a $7bn payment if the merger falls through and covers the $2.8bn fee Warner Bros agreed to pay Netflix in the event of a break-up.
Also read: Paramount increases Warner Bros bid to compete with Netflix
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