Paramount Skydance is now on track to take over Warner Bros. Discovery after Netflix withdrew from the bidding war. The move hands control of a vast entertainment empire spanning: CNN, Nickelodeon, HBO, and Warner’s blockbuster franchises, to the Ellison family, headed by Oracle founder Larry Ellison and his son, Paramount CEO David Ellison.
Netflix co-CEOs Ted Sarandos and Greg Peters said the deal “was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.” They added that while Netflix would have been “strong stewards of Warner Bros.’ iconic brands,” the new price required to match Paramount’s offer made the acquisition “no longer financially attractive.”
Paramount’s bid, valued at $31 per share, aims to acquire the entire Warner Bros. Discovery company, including HBO Max, CNN, and blockbuster franchises such as Harry Potter and Superman. In contrast, Netflix had sought only Warner’s studio and streaming assets at $27.75 per share. Paramount has also agreed to a $7 billion regulatory termination fee and to cover the $2.8 billion breakup fee owed to Netflix if the deal proceeds.
The acquisition would combine two of Hollywood’s five legacy studios, merging Paramount’s catalog — including Top Gun, Titanic, and The Godfather — with Warner’s films and hit TV shows like Succession and The White Lotus.
CBS, MTV, and Nickelodeon, along with the Paramount+ streaming service, would also be under the same umbrella, raising questions about industry consolidation. Critics warn the deal could lead to job losses, less diversity in filmmaking, and higher costs for consumers.
Paramount is financing the deal with billions in debt, supported by Larry Ellison and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi. The family’s close ties to President Donald Trump have drawn political attention, with Trump previously suggesting a role in the outcome.
With Netflix officially withdrawing, Warner Bros. Discovery’s board can now terminate its agreement with the streaming giant and proceed with Paramount.
