Paramount Global, backed by the financial strength of Oracle Executive Chairman Larry Ellison and his son David Ellison, is set to acquire Warner Bros. Discovery, effectively ending Netflix’s bid for the media conglomerate. Warner Bros. Discovery announced Thursday that Paramount Skydance’s offer of $31 a share constituted a “superior proposal,” initiating a four-business-day window for Netflix to respond.
Netflix, however, declined to increase its all-cash offer of $82.7 billion, stating that matching Paramount Skydance’s bid was “no longer financially attractive.” Co-CEOs Ted Sarandos and Greg Peters released a statement Thursday asserting the initial transaction “would have created shareholder value with a clear path to regulatory approval,” but ultimately maintained their financial discipline. The decision will result in Warner Bros. Discovery paying Netflix a $2.8 billion termination fee, a cost Paramount’s offer includes covering.
The acquisition will bring the entirety of Warner Bros. Discovery – including its studios, HBO, streaming service, games and entertainment divisions and linear television networks such as CNN, TBS, TNT, Discovery, and HGTV – under the Paramount umbrella. Paramount was itself acquired last year by Skydance Media, with substantial funding from Larry Ellison. David Ellison, who leads Paramount, has reportedly warned of significant job cuts following the integration of the two companies, according to reports.
The outcome marks a significant defeat for Netflix in its attempt to expand its content library and streaming dominance. The bidding war had escalated to the “high tens of billions of dollars,” according to reports, before Paramount’s renewed offer proved decisive. The deal’s progression underscores the increasing consolidation within the media landscape and the growing influence of tech billionaires in Hollywood.
The acquisition remains subject to regulatory review. No timeline for completion has been publicly announced, and the combined entity faces the challenge of integrating two large and complex organizations.
