Paramount Nears $111B Warner Bros Deal After Netflix Exit

In a major development that could reshape the global media and entertainment industry, Paramount Skydance is poised to acquire Warner Bros. Discovery in a deal valued at approximately $111 billion. The move comes after Netflix officially stepped back from the bidding process, declining to raise its previous offer.

The proposed Warner Bros takeover marks the end of a dramatic months-long bidding battle between two powerful media giants. If approved by regulators, the merger is expected to significantly reshape Hollywood’s future.

Why Netflix Dropped Its Bid

Financial Discipline Over Expansion

Netflix had earlier agreed to purchase selected Warner Bros assets in a deal worth around $82 billion, including debt. However, after Paramount raised its offer, Netflix chose not to compete further.

In a joint statement, Netflix co-chief executives Ted Sarandos and Greg Peters explained that the deal was no longer financially attractive at the increased price.

They emphasized that while the acquisition would have been beneficial, it was not essential at any cost. The company maintained its commitment to disciplined investments and long-term shareholder value.

Paramount’s Stronger Offer Wins Support

Improved Cash Bid and Breakup Protection

Paramount strengthened its proposal by increasing its offer to $31 per share in cash, up from $30. The company also agreed to significant financial protections, including:

• A $7 billion payment if the deal fails

• Coverage of the $2.8 billion breakup fee previously agreed between Warner Bros and Netflix

According to David Ellison, CEO of Paramount Skydance, the revised offer provides shareholders with “superior value, certainty, and speed.”

Paramount is backed by tech billionaire Larry Ellison, adding financial strength to the deal.

Regulatory Review Still Pending

Investigation by Authorities

Despite Warner Bros declaring Paramount’s bid superior, the acquisition is not yet finalized. The merger must still pass scrutiny from multiple regulatory bodies, including:

• The California Department of Justice

• The US Department of Justice

• European regulators

California Attorney General Rob Bonta confirmed that his office has launched an open investigation into the proposed merger, emphasizing that the entertainment sector plays a crucial role in the state’s economy.

Impact on CNN and Major Media Brands

One of the biggest concerns surrounding the Warner Bros takeover involves CNN, which is owned by Warner Bros.

If the deal receives approval, Paramount would gain control of:

• CNN

• Food Network

• Major sports broadcasting assets

• Streaming platform HBO Max

Paramount’s existing portfolio already includes leading brands such as:

• CBS

• Nickelodeon

• Comedy Central

The potential merger raises questions about the future editorial direction of CNN and broader media independence, particularly given political scrutiny.

Political and Industry Concerns

The deal has drawn attention due to reported connections between Larry Ellison and former US President Donald Trump. Trump has previously criticized CNN and publicly suggested that the network should be sold.

Additionally, Paramount’s earlier merger with Skydance required approval from federal regulators, including the Federal Communications Commission. Past negotiations with government authorities have intensified public debate about media ownership and political influence.

Hollywood Faces Major Transformation

The acquisition could lead to substantial changes across the entertainment industry. Experts believe:

• Staff reductions are likely

• Streaming competition will intensify

• Traditional cinema and broadcast television models may shift

The battle between Netflix and Paramount was widely seen as a turning point for Hollywood. While some feared a Netflix acquisition would push traditional studios further toward streaming dominance, others remain cautious about Paramount’s political ties.

What Happens Next?

Although Paramount’s bid has been declared superior, the final outcome depends on regulatory approval. If the deal closes:

• Paramount will integrate HBO Max subscribers into its streaming ecosystem

• Warner Bros’ film and television assets will strengthen Paramount’s global reach

• The structure of major US news and entertainment networks could change significantly

This $111 billion media merger stands as one of the most significant takeover attempts in recent entertainment history. Its approval could redefine the competitive landscape of Hollywood, streaming services, and broadcast news for years to come.