In a dramatic conclusion to a protracted corporate battle, Paramount Skydance has emerged victorious in the quest to acquire Warner Bros Discovery after streaming giant Netflix declined to escalate its competing offer. The decision, announced Thursday, positions Paramount to potentially reshape the Hollywood landscape through one of the industry’s most significant consolidations.
Warner Bros’ board formally declared Paramount’s enhanced bid ‘superior,’ prompting Netflix executives to formally withdraw from negotiations. In an official statement, Netflix co-CEOs Ted Sarandos and Greg Peters emphasized fiscal discipline, noting the transaction was ‘a nice to have at the right price, not a must have at any price.’ Their decision came hours after Sarandos’ White House visit, though the company denied any connection between the events.
The proposed merger now faces rigorous regulatory scrutiny from multiple agencies. California Attorney General Rob Bonta immediately announced an active investigation, emphasizing that the entertainment industry represents a ‘critical sector’ for the state’s economy. The deal additionally requires approval from the U.S. Department of Justice and European regulatory bodies.
Beyond corporate implications, the acquisition carries profound consequences for media landscape. Paramount would assume control of CNN, sparking concerns about editorial independence given the Ellison family’s political connections. Former President Donald Trump has repeatedly criticized CNN’s leadership, previously demanding the network’s sale as part of any Warner Bros transaction. CNN President Mark Thompson cautioned staff against premature conclusions in an internal email obtained by media outlets.
The bidding war’s conclusion follows months of complex negotiations. Netflix’s December offer of $27.75 per share for select assets contrasted with Paramount’s comprehensive $31 per share proposal for the entire company, including a $7 billion breakup fee provision. Paramount’s financing, backed by technology billionaire Larry Ellison and initially supported by Jared Kushner’s Affinity Partners, has drawn particular scrutiny regarding political dimensions.
Industry analysts note that whichever entity prevailed would inevitably reshape Hollywood’s power structure. A Paramount-Warner merger would create a traditional studio powerhouse controlling iconic franchises, while a Netflix acquisition would have further cemented streaming dominance. The outcome likely presages significant workforce reductions and content strategy realignments across the industry.