Paramount Skydance is set to acquire Warner Bros. Discovery following the decision by Netflix to pull out of the bidding contest.
The proposed transaction would place a vast media portfolio — including CNN, HBO and Nickelodeon — under the control of the Ellison family. The bid is backed by Larry Ellison, founder of Oracle, and his son David Ellison, who serves as Paramount’s chief executive.
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 offer values Warner Bros. Discovery at $31 per share and seeks to acquire the company in its entirety, including the HBO Max streaming platform and major film franchises such as Harry Potter and Superman. Netflix, by contrast, had proposed a $27.75-per-share bid focused solely on Warner’s studio and streaming operations.
As part of the agreement, Paramount has committed to a $7 billion regulatory termination fee and will also assume responsibility for the $2.8 billion breakup fee owed to Netflix if the takeover proceeds.
If completed, the transaction would unite two of Hollywood’s five legacy studios. Paramount’s library — which includes Top Gun, Titanic and The Godfather — would combine with Warner’s film and television slate, including acclaimed series such as Succession and The White Lotus. Assets such as CBS, MTV, Nickelodeon and the Paramount+ streaming service would operate within the expanded corporate structure.
Industry observers say the scale of the merger underscores accelerating consolidation in the entertainment sector. Critics have cautioned that the deal could result in workforce reductions, diminished creative diversity and higher subscription costs for consumers.
Paramount is expected to finance the acquisition largely through debt, with backing from Larry Ellison and sovereign wealth funds in Saudi Arabia, Qatar and Abu Dhabi. The Ellison family’s relationship with U.S. President Donald Trump has also drawn attention, particularly after Trump previously indicated he could have a role in the matter.
With Netflix now formally out of contention, Warner Bros. Discovery’s board is positioned to terminate its prior agreement with the streaming company and move forward with Paramount Skydance, paving the way for one of the most significant media mergers in recent years.
