Paramount Skydance is now set to take over Warner Bros after Netflix abandoned its pursuit, clearing the way for what could become one of the largest deals in Hollywood history, valued at around $111bn. The shift ends months of intense competition between two of the entertainment industry’s biggest players and marks a potential turning point for film studios, news networks, and streaming services alike.
Warner Bros confirmed Thursday that Paramount’s latest bid surpassed Netflix’s offer, which the streaming company declined to match, citing that the deal was “no longer financially attractive.” The board said Paramount’s improved proposal provides shareholders with a stronger path to completion, offering certainty and speed in closing the deal.
Netflix co-CEOs Ted Sarandos and Greg Peters emphasized that their approach had always been careful and measured. “This transaction was always a 'nice to have' at the right price, not a 'must have' at any price,” they said.
The acquisition would give Paramount ownership of Warner Bros’ extensive library, its networks, and streaming services. If regulators approve, HBO Max subscribers would be integrated into Paramount’s platforms, while Paramount would also gain control of CNN, the Food Network, CBS, Nickelodeon, Comedy Central, and various sports channels.
California Attorney General Rob Bonta warned that regulatory scrutiny remains ongoing. “These two Hollywood titans have not cleared regulatory scrutiny,” he said, noting that his office is closely examining the merger as part of a broader review of the entertainment sector’s impact on the state’s economy. Paramount will also need clearance from the US Department of Justice and European authorities.
Paramount’s rise in the bidding war has attracted attention due to political connections. Backed by tech billionaire Larry Ellison and led by his son David Ellison, Paramount’s deal had earlier drawn interest from former President Donald Trump and Jared Kushner, although Kushner’s firm later withdrew amid scrutiny. CNN, part of Warner Bros, remains in focus, with CEO Mark Thompson urging employees to “not jump to conclusions about the future until we know more” as the deal unfolded.
The company raised its offer to $31 per share, up from $30, surpassing Netflix’s $82bn proposal. Paramount also agreed to cover $7bn if the deal fails and pay the $2.8bn fee Warner Bros owed Netflix in case of a break-up.
David Ellison hailed the Warner Bros board decision, calling it “superior value, certainty and speed to closing” for shareholders. Analysts warn the deal could trigger staff reductions and restructuring across Warner Bros, CBS News, and other divisions while reshaping Hollywood’s studio and streaming dynamics.
This acquisition could redefine the entertainment landscape. By combining Paramount’s networks, movie studios, and streaming platforms with Warner Bros’ assets, the deal introduces a new era of consolidation, strategic maneuvering, and political attention in the US media sector.
