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Paramount secures Warner Bros after Netflix withdraws bid
Paramount has emerged victorious in a months-long battle to acquire Warner Bros Discovery after Netflix declined to match its $111bn (£82.2bn) offer, marking a pivotal shift in Hollywood's media landscape.
Warner Bros backs Paramount's superior bid
Warner Bros announced on Thursday that Paramount's latest proposal was deemed "superior" to Netflix's earlier offer. Netflix executives confirmed they would not raise their bid, citing the deal's diminished financial appeal at the higher price.
"The transaction we negotiated would have created shareholder value with a clear path to regulatory approval," Netflix co-CEOs Ted Sarandos and Greg Peters stated. "However, we've always been disciplined. This was a 'nice to have' at the right price, not a 'must have' at any price."
Regulatory hurdles remain
Despite the agreement, California Attorney General Rob Bonta warned that the merger is far from finalized. "These two Hollywood titans have not cleared regulatory scrutiny," he said in a social media post, noting an ongoing investigation by the California Department of Justice.
Paramount will also require approval from the U.S. Department of Justice and European regulators. The deal's potential impact on CNN, owned by Warner Bros, has drawn particular attention amid concerns over media consolidation.
Political ties and industry fallout
Paramount's bid, backed by tech billionaire Larry Ellison and led by his son David, has faced scrutiny over its connections to former U.S. President Donald Trump. Trump, a vocal critic of CNN, had previously called for the network's sale, labeling its leadership "corrupt or incompetent."
Jared Kushner, Trump's son-in-law and adviser, initially supported Paramount's hostile bid through his investment firm, Affinity Partners, but withdrew in December amid growing scrutiny.
"Do not jump to conclusions about the future until we know more,"
CNN CEO Mark Thompson in an internal email
Industry reactions and next steps
David Ellison, Paramount's chief executive, welcomed Warner Bros' decision, calling the offer "superior value, certainty and speed to closing." If approved, the merger would combine HBO Max's streaming customers with Paramount's portfolio, which includes Nickelodeon, CBS, and Comedy Central.
Critics warn the deal could lead to significant job cuts in Hollywood, already reeling from production slowdowns. Others express unease over Paramount's political ties and the future of CNN under its ownership.
Warner Bros had initially agreed to sell its film and streaming divisions to Netflix for $27.75 per share, or roughly $82bn including debt, before Paramount's $31-per-share cash offer swayed the board.
