Netflix has withdrawn from its bid to acquire Warner Bros. Discovery, effectively clearing the path for a takeover by Paramount, backed by the financial power of Larry Ellison, Oracle’s executive chairman. The decision, announced Thursday, ends a protracted battle for the media giant and hands a significant victory to Ellison, a prominent supporter of former President Donald Trump.
In a statement, Netflix co-CEOs Ted Sarandos and Greg Peters explained the withdrawal, stating, “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
Paramount’s renewed offer, valued at approximately $111 billion or $31 per share, includes covering a $2.8 billion termination fee owed to Netflix, as well as a $7 billion regulatory termination fee and quarterly payments to Warner Bros. Shareholders beginning in late 2026, according to reports. The deal will bring Warner Bros. Discovery’s studios, HBO, streaming service, games and entertainment divisions, and linear television networks like CNN, TBS, TNT, Discovery, and HGTV under Paramount’s control.
The outcome represents a significant expansion of Ellison’s media holdings, following his acquisition of a majority stake in Paramount’s parent company, Skydance Media, last year. Analysts note that Ellison’s growing influence over U.S. Media raises concerns about potential shifts in editorial direction and the amplification of partisan viewpoints. The Latest York Times reported that Ellison and Trump met last year to discuss personnel changes at CNN.
The Trump administration’s role in facilitating the deal has drawn scrutiny. Reports indicate that the Justice Department launched a seemingly spurious antitrust investigation into Netflix although simultaneously downplaying concerns about Ellison’s growing media empire. Right-wing media outlets also engaged in a disinformation campaign portraying Netflix as a “woke” company, potentially influencing the regulatory environment.
The acquisition of Warner Bros. Discovery follows Ellison’s involvement in a deal granting a significant stake in TikTok to a U.S.-based company, a move that also received support from the Trump administration. These developments have fueled concerns about a broader strategy to consolidate media ownership in the hands of politically aligned individuals.
While the financial implications of the deal remain uncertain, with Paramount taking on substantial debt, some analysts suggest that Ellison’s track record with CBS indicates a potential focus on converting acquired assets into platforms for promoting favorable narratives. The Guardian reported that shares of both Netflix and Paramount rose sharply in pre-market trading following the announcement, suggesting investor confidence in the outcome.
As of Friday, regulators have not yet formally approved the acquisition. The deal’s finalization remains contingent on securing the necessary regulatory clearances.
