In a dramatic corporate showdown reshaping the global media landscape, Paramount Skydance has emerged victorious in the acquisition battle for Warner Bros. Discovery after streaming giant Netflix declined to increase its final offer. The decision concludes one of the most significant media consolidation contests in recent history, transferring control of an entertainment empire spanning CNN, Nickelodeon, HBO, and extensive film production assets.
Netflix formally announced its withdrawal from negotiations Thursday, stating that while their proposed transaction would have created shareholder value with a clear regulatory pathway, the financial terms required to match Paramount’s improved bid no longer represented an attractive investment. ‘We’ve always been disciplined,’ the company emphasized, characterizing the deal as ‘nice to have at the right price, not a must-have at any price.’
The resolution clears the path for Paramount Skydance, led by technology heir David Ellison and substantially financed by Oracle tycoon Larry Ellison, to proceed with its acquisition. The revised offer values Warner Bros. Discovery at approximately $108 billion, featuring a cash payment of $31.00 per share—a one-dollar increase from Paramount’s previous bid.
Notably, the transaction has drawn White House attention due to Larry Ellison’s longstanding political alliance with former President Donald Trump, who previously asserted influence over the deal’s outcome. The bidding process encountered additional complications as Republican lawmakers criticized Netflix’s content policies during negotiations, though company leadership vigorously denied these allegations.
The Paramount agreement includes substantial financial safeguards, featuring a $7 billion regulatory termination fee should the merger fail to receive government approval, alongside coverage of Warner Bros.’ $2.8 billion breakup fee obligation to Netflix. Financing involves commitments from Larry Ellison to provide additional capital if required by lending institutions, alongside participation from sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi—a dimension that may prompt extended regulatory examination.
The combined entity would unite streaming platforms HBO Max and Paramount+, merge two major Hollywood studios, and consolidate news operations under singular ownership, potentially creating the most comprehensive media portfolio in the industry.