Netflix has walked away from its bid to buy Warner Bros. Discovery’s studio and streaming assets, leaving the path open for Paramount — now controlled by Skydance — to pursue a full takeover of Warner.
Warner’s board said Paramount’s latest proposal of $31 per share was superior to the earlier Netflix transaction. Warner gave Netflix four business days to submit a higher offer; Netflix declined, saying the increased price made the deal unattractive on financial grounds. Netflix co-CEOs Ted Sarandos and Greg Peters said they believed they would have been strong stewards of Warner’s brands but that the deal was not essential at the new price.
Paramount’s bid, worth roughly $111 billion including debt, seeks to acquire the whole company rather than just its studio and streaming operations. If approved by shareholders and regulators, the deal would combine HBO Max, Warner’s film and TV catalog and franchises such as Harry Potter with Paramount’s assets — including CBS, Paramount+, and franchises like Top Gun — creating one of the largest media libraries in the industry. Warner properties such as Superman, Barbie, The White Lotus and Succession would join Paramount’s existing titles like Titanic and The Godfather and networks including MTV and Nickelodeon.
The proposed merger has raised antitrust and media-concentration concerns. Critics warn that putting so many major outlets under a single owner could reduce competition and narrow the diversity of editorial voices. Observers pointed to editorial changes at CBS since Skydance took control — including the hiring of Bari Weiss as CBS News editor-in-chief — and suggested similar shifts could occur at CNN if the transaction proceeds. Forrester analyst Mike Proulx said politics have been unusually prominent in this takeover fight and have tended to benefit Paramount.
Paramount’s bid is supported by significant financing, notably from billionaire Larry Ellison, the founder of Oracle and father of Paramount CEO David Ellison. The push for control follows Skydance’s contentious acquisition of Paramount earlier this year, which was finalized after the company agreed to pay $16 million to then-President Donald Trump to settle a lawsuit over alleged editing of a CBS “60 Minutes” segment.
Warner CEO David Zaslav praised Netflix executives as strong partners and wished them well, while saying a Paramount-Skydance merger with Warner could generate substantial value if the board finalizes the agreement. Paramount CEO David Ellison described the board’s affirmation of the bid as proof of its superior value.
The battle for Warner has also drawn political scrutiny. Several Democrats, including Senator Elizabeth Warren, warned that further consolidation under a small set of billionaire-aligned owners could harm competition and media diversity, with Warren calling a potential Paramount-Warner combination an “antitrust disaster.” The ultimate outcome will depend on regulatory review and shareholder approval, which will determine whether Paramount’s superior bid succeeds.
