Netflix has withdrawn from its bid to acquire Warner Bros Discovery, clearing the path for Paramount Skydance to secure a takeover valued at approximately $111 billion (£82.2bn).
Warner Bros announced on Thursday that Paramount’s revised offer was “superior” to Netflix’s proposal. Netflix declined to increase its bid, with co-chief executives Ted Sarandos and Greg Peters saying the deal was “no longer financially attractive” at the higher price.
“This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” the Netflix executives said.
In December, Warner Bros agreed to sell key film and streaming assets to Netflix in a deal worth about $82bn, including debt. Paramount later submitted a rival offer, initially rejected, but returned this week with an improved bid of $31 per share in cash, up from $30.
Paramount also agreed to pay:
- A $7bn break fee if the deal collapses
- The $2.8bn termination fee Warner Bros would have owed Netflix
The sweeter terms ultimately won over the Warner Bros board.
Despite Paramount’s apparent victory, the deal is far from final.
California Attorney General Rob Bonta warned that the merger “is not a done deal,” confirming an ongoing investigation by the California Department of Justice. The transaction will also require approval from the US Department of Justice and European regulators.
If approved, Paramount would acquire:
- The iconic Warner Bros film studio
- Streaming service HBO Max
- News network CNN
- The Food Network and major sports assets
Paramount’s existing portfolio includes CBS, Nickelodeon, and Comedy Central, making the combined entity a dominant force in Hollywood and global media.
Paramount is backed by tech billionaire Larry Ellison and led by his son, David Ellison, who said the offer provides shareholders with “superior value, certainty and speed to closing.”
The deal has drawn political attention due to Larry Ellison’s ties to US President Donald Trump, who has frequently criticised CNN and previously suggested the network should be sold.
Concerns have also been raised about potential political influence and the broader impact on media independence.
The takeover marks the climax of a months-long corporate battle that could significantly reshape the entertainment landscape. Industry observers expect restructuring and potential job cuts if the merger proceeds.
For Hollywood, the outcome represents more than a corporate transaction, it signals a major shift in the balance of power among traditional studios, streaming giants, and politically connected investors.
