Warner Bros Deal: Netflix Pulls Out of $111bn as Paramount Skydance Takes Lead

Warner Bros Deal: Netflix has withdrawn from its proposed takeover of Warner Bros. Discovery, effectively clearing the way for Paramount Skydance to secure a deal valued at approximately $111bn (£82.2bn).

Warner Bros confirmed on Thursday that Paramount’s revised offer was “superior” to Netflix’s earlier proposal. Netflix, which had previously agreed to acquire parts of the studio in a deal worth about $82bn (£61bn) including debt, declined to increase its bid.

Warner Bros Deal: Why Netflix Walked Away

In a joint statement, Netflix co-chief executives Ted Sarandos and Greg Peters said the transaction was no longer financially attractive at the higher valuation.

“This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” the executives said, emphasising the company’s disciplined approach to acquisitions.

The announcement followed months of intense competition between the streaming giant and Paramount for control of Warner Bros, one of Hollywood’s most storied studios.

What Paramount Gains

If approved by regulators, Paramount would acquire Warner Bros’ film studios, streaming services, and traditional media networks. That includes major assets such as HBO Max and news network CNN, along with entertainment brands like the Food Network and various sports holdings.

Paramount’s existing portfolio already includes well-known names such as CBS, Nickelodeon and Comedy Central, positioning the combined entity as a media powerhouse.

Paramount Skydance is backed by billionaire Larry Ellison and led by his son, David Ellison, who welcomed the board’s decision. He described the sweetened offer — raised to $31 per share — as delivering “superior value, certainty and speed to closing” for shareholders.

Regulatory Scrutiny Ahead

Despite Warner Bros’ endorsement of the Paramount bid, the deal still faces significant regulatory review.

California Attorney General Rob Bonta said the merger is “not a done deal,” confirming that the California Department of Justice has launched an investigation. Approval would also be required from the US Department of Justice and European regulators.

Concerns surrounding the deal extend beyond antitrust issues. Paramount’s financial backing and perceived political connections have drawn scrutiny, particularly given Larry Ellison’s ties to Donald Trump. Trump has previously criticised CNN’s coverage and suggested the network should be sold.

Earlier developments involving Paramount’s merger with Skydance and regulatory negotiations with the Federal Communications Commission also sparked debate within media and political circles.

A Reshaped Hollywood

The potential takeover could dramatically reshape Hollywood’s power structure. A Netflix acquisition would have strengthened the dominance of streaming over traditional cinema. By contrast, a Paramount-Warner merger consolidates two major legacy studios at a time when the industry is already navigating production cuts, layoffs and shifting audience habits.

Critics argue that either outcome carries risks — from reduced competition to concerns over editorial independence at major news organisations.

For now, Netflix has stepped back, Paramount is in pole position, and regulators hold the final say. If approved, the $111bn deal would mark one of the most consequential media mergers in recent history, with ripple effects across film, television and global news.

Source: BBC.com

Also read: Netflix Boss Defends $82.7bn Warner Bros Bid as Paramount Deadline Nears