Netflix has withdrawn its offer to buy Warner Bros. Discovery’s studio and streaming assets, effectively clearing the way for Paramount — now controlled by Skydance — to pursue a full takeover of Warner.
Warner’s board said Thursday that Paramount’s latest bid to buy the entire company for $31 per share was superior to the deal Warner had previously agreed with Netflix. Warner gave Netflix four business days to present a counteroffer; Netflix declined to raise its proposal, saying the higher price made the deal “no longer financially attractive.” Netflix co-CEOs Ted Sarandos and Greg Peters said they believed they “would have been strong stewards of Warner Bros.’ iconic brands,” but called the acquisition a “nice to have” at the right price, not a “must have.”
Paramount’s offer — valued at roughly $111 billion including debt — would be an industry-shaping combination if approved by Warner shareholders and regulators. Unlike Netflix, which was targeting only Warner’s studio and streaming business, Paramount is pursuing the entire company: HBO Max, franchises such as Harry Potter, CNN and Warner’s TV and film catalog would join Paramount’s assets, including CBS, Top Gun and Paramount+. Warner movies and series like Superman, Barbie, The White Lotus and Succession would be added to Paramount’s library, which already includes titles such as Titanic and The Godfather, plus networks like MTV and Nickelodeon.
The proposed merger raises antitrust questions and concerns about concentrated media power and political influence. Critics point to recent editorial shifts at CBS under Skydance ownership — including the hiring of Bari Weiss as CBS News editor-in-chief — and warn similar changes could occur at CNN if Paramount’s bid succeeds. Forrester analyst Mike Proulx said politics have played an outsized role in the battle and implied they have favored Paramount.
Paramount’s effort has prominent financial backing. Billionaire Oracle founder Larry Ellison, father of Paramount CEO David Ellison, is a major backer of the bid. The takeover push follows Skydance’s contentious acquisition of Paramount earlier this year, approved shortly after the company agreed to pay $16 million to then-President Donald Trump to settle a lawsuit over editing of a “60 Minutes” segment on CBS.
Warner CEO David Zaslav praised Netflix executives as “extraordinary partners” and said he wished them well, while signaling that a Paramount-Skydance merger with Warner “will create tremendous value” once the board adopts the agreement. Paramount CEO David Ellison called Warner’s board affirmation of their offer evidence of its superior value.
The fight over Warner’s future has drawn political attention. Some Democrats, including Sen. Elizabeth Warren, warned that consolidation under a small group of billionaire-aligned owners could reduce competition and media diversity; Warren called a potential Paramount-Warner deal an “antitrust disaster.” Regulatory review and shareholder approval will determine whether Paramount’s superior bid ultimately succeeds.
