Paramount Skydance is now in a strong position to acquire Warner Bros Discovery in a deal valued at approximately $111 billion (£82.2 billion) after Netflix officially stepped back from the bidding process.
Warner Bros confirmed on Thursday that Paramount’s revised offer was considered “superior” to Netflix’s proposal. Netflix chose not to increase its bid, stating that the transaction was no longer financially attractive at the higher valuation.
If completed, this major media merger could significantly reshape the Hollywood entertainment industry, bringing one of the world’s most iconic studios under new ownership.
Why Netflix Dropped Out of the Deal
Last December, Warner Bros had agreed to sell parts of its business to Netflix in a deal worth around $82 billion, including debt. However, Paramount later submitted a competing offer, which was initially rejected.
Earlier this week, Paramount raised its bid to $31 per share in cash, up from $30, making the proposal more attractive to shareholders.
In a joint statement, Netflix co-chief executives Ted Sarandos and Greg Peters said:
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we have always remained disciplined.”
They described the acquisition as a “nice to have”, not something the company would pursue at any cost.
Regulatory Hurdles Still Ahead
Despite Paramount’s improved offer, the deal is far from final.
California Attorney General Rob Bonta stated that the merger is “not a done deal.” The California Department of Justice has opened an investigation and plans to closely review the transaction.
In addition, the merger will require approval from the U.S. Department of Justice and European regulators. Given the size and impact of the deal, authorities are expected to carefully assess its effect on competition and media ownership.
What the Deal Means for CNN and Other Media Brands
A successful takeover would have major implications for CNN, which is owned by Warner Bros. The future of the global news network has been a topic of concern throughout the bidding war.
Paramount plans to integrate Warner Bros’ streaming platform HBO Max, along with media assets including CNN, the Food Network, and sports networks, into its portfolio.
Paramount’s existing brands include CBS, Nickelodeon, and Comedy Central. Combining these networks would create one of the largest entertainment groups in the United States.
Political and Financial Scrutiny Around the Deal
Paramount is backed by tech billionaire Larry Ellison and led by his son, David Ellison.
The financing of the deal has attracted political attention due to Larry Ellison’s ties to former U.S. President Donald Trump. Trump has publicly criticized CNN in the past and previously suggested that the network should be sold as part of any Warner Bros transaction.
Earlier support for Paramount’s bid also involved Jared Kushner, though his investment firm later withdrew amid scrutiny.
In a separate development, Paramount’s 2025 merger with Skydance faced examination during negotiations with federal regulators. The company also agreed to a $16 million settlement involving CBS News related to a lawsuit filed by Trump over a “60 Minutes” interview with former Vice President Kamala Harris.
Hollywood Braces for Industry Impact
The proposed merger has divided opinion in Hollywood. Some industry insiders feared that a Netflix acquisition would weaken traditional cinema, as the streaming giant continues to dominate digital entertainment.
However, critics are also cautious about a Paramount takeover, citing concerns about media consolidation, political influence, and newsroom independence—especially regarding CNN.
Regardless of who wins final approval, analysts agree that the sale of Warner Bros will have significant consequences for the entertainment sector, including potential leadership changes and job cuts in Los Angeles.
Financial Terms of Paramount’s Latest Offer
Paramount’s updated proposal includes:
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$31 per share in cash
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A commitment to pay $7 billion if the deal collapses
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Coverage of the $2.8 billion break-up fee Warner Bros had agreed to pay Netflix
Paramount CEO David Ellison said the improved offer provides shareholders with “superior value, certainty, and speed to closing.”
If regulators approve the acquisition, Paramount would gain control of Warner Bros’ film studios, streaming services, and television networks—creating a powerful new force in the global media and entertainment market.
Conclusion
The potential $111 billion Warner Bros takeover marks one of the biggest deals in recent media history. With Netflix stepping aside, Paramount Skydance is now the leading contender. However, regulatory approval and political scrutiny remain key challenges.
If completed, the merger could redefine the future of Hollywood studios, streaming platforms, and broadcast news, reshaping the global entertainment landscape for years to come.
