Netflix Walks Away From Warner Bros. Deal as Paramount’s Bigger Offer Wins Over Shareholders
On Thursday, the Warner Bros. Discovery board announced that Paramount’s newly sweetened offer to acquire the entire company is officially “superior” to the $83 billion agreement it had reached with Netflix. Rather than escalate into a bidding war, Netflix has decided to step aside.
That ends what had been shaping up to be one of the most dramatic media shake-ups in years. While this is a major victory for Paramount, it also marks the end of Netflix’s ambitious plan to absorb one of Hollywood’s most iconic studios.
Netflix confirmed its exit with the following tatement: "We've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
For weeks, it looked like Netflix had the inside track. The company’s proposed deal would have carved out Warner’s streaming services, studios, and massive library of intellectual property. Netflix even promised that Warner Bros. would continue operating as an independent studio and keep releasing films theatrically.
But Paramount wasn’t ready to let it go.
Earlier this year, Paramount put forward a $108 billion offer for all of Warner, including cable networks like CNN, TBS, and Discovery. Then this week, it sweetened the pot again by increasing its bid by a dollar per share. That proved to be enough to sway the Warner board.
Just days ago, Netflix CEO Ted Sarandos publicly challenged Paramount while walking the BAFTA red carpet. 'If you wanna try and outbid our deal … just make a better deal. Just put a better deal on the table.”
Paramount did exactly that. Interestingly, hours before Warner’s official announcement, Sarandos was at the White House meeting with Trump administration officials to advocate for the Netflix deal.
The meetings, first leaked to media outlets, were later confirmed by a White House official who spoke on the condition of anonymity. President Trump wasn’t present at the meeting.
Now the focus shifts to what comes next.
Netflix’s proposal had already stirred antitrust concerns, but the Paramount acquisition is expected to face serious scrutiny from the U.S. Justice Department as well.
Paramount already controls CBS, Paramount Plus, Comedy Central, Nickelodeon, and other cable assets. Adding Warner Bros. Discovery to that mix creates a massive consolidation of media power.
The deal is being led by Paramount CEO David Ellison, whose bid is backed by the fortune of his father, Oracle co-founder Larry Ellison. David Ellison has been telling shareholders that his path to regulatory approval would be smoother than Netflix’s.
There’s also the political angle. Larry Ellison is a financial supporter of President Trump. David Ellison was photographed giving a MAGA-friendly thumbs-up before the State of the Union alongside Senator Lindsey Graham.
All of that political context could play a role as regulators evaluate the merger.
From a fan perspective, this is complicated. Watching Warner Bros. get swallowed by another major studio doesn’t exactly feel great. At the same time, it arguably lands in better hands than becoming part of a streaming-only empire.
At least under Paramount, there’s a stronger argument for preserving theatrical releases and the traditional studio structure.
Either way, this is a seismic shift in the entertainment industry. One of Hollywood’s most historic studios is about to change ownership, and the ripple effects across film, television, and streaming will be massive.
The bidding war may be over, but the real drama is just getting started.
Source: NPR