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Paramount Skydance is on track to acquire Warner Bros Discovery in a deal valued at roughly $111bn (£82.4bn), after Netflix withdrew its
bid, citing financial constraints. The exit clears months of competitive maneuvering for one of Hollywood’s most iconic studios.
Warner Bros, which began exploring a sale last year, stated on Thursday that Paramount’s latest offer was “superior” to Netflix’s proposal. Netflix had previously refused to raise its bid, leaving the streaming giant out of the final negotiations.
Netflix co-CEOs Ted Sarandos and Greg Peters said the decision was grounded in discipline: “This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.” They added that while they would have been strong stewards of Warner Bros’ brands, the deal “is no longer financially attractive.”
The acquisition would give Paramount control over Warner Bros’ film and media networks, including HBO Max, CNN, the Food Network, and a
portfolio of sports content. Paramount’s current holdings already include CBS, Comedy Central, and Nickelodeon. The merger is poised to reshape both Hollywood’s studio landscape and the broader media ecosystem.
Regulatory approval remains a key hurdle. California Attorney General Rob Bonta emphasized that the merger “is not a done deal,” pointing to ongoing scrutiny by the state’s Department of Justice. Federal and European regulators must also review the proposal.
Paramount, led by CEO David Ellison and backed by his father, tech billionaire Larry Ellison, sweetened its offer to $31 per share, up from $30, and agreed to cover $7bn should the deal collapse, including the $2.8bn breakup fee owed to Netflix.
The deal has sparked debate over media consolidation and political influence, given Larry Ellison’s ties to former President Donald Trump. CNN staff have been urged to await clarity on the network’s future amid uncertainty.
If finalized, the merger would unite Warner Bros’ franchises, from Superman to Barbie, with Paramount’s lineup, including Top Gun and The
Godfather, creating one of Hollywood’s largest studio portfolios. Share prices reacted sharply: Netflix rose 8.5% in relief, while Paramount jumped 6.2%, and Warner Bros shares lingered below the new bid at $28.80. Analysts view Netflix’s disciplined withdrawal as a move that allows the company to refocus on core streaming strengths, leaving Paramount poised to make a historic mark on Hollywood.
