Netflix has withdrawn from the bidding for Warner Bros. Discovery, effectively clearing the path for Paramount Skydance to acquire the media conglomerate, including its ownership of CNN, according to a statement released Thursday. The decision follows a revised $31 per share offer from Paramount Skydance, valuing the deal at roughly $110 billion, a figure Netflix declined to match.
Netflix co-CEOs Ted Sarandos and Greg Peters explained the company’s decision, stating, “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.”
The potential acquisition marks a significant shift in the media landscape, coming just six months after Skydance completed its takeover of Paramount, rebranding the company as “Paramount Skydance.” The deal places control of a vast portfolio of media assets – including CNN, HBO Max, and numerous cable channels – under the leadership of David Ellison, CEO of Paramount Skydance and son of billionaire Larry Ellison. This concentration of power has raised concerns among antitrust regulators and lawmakers.
The approval of the Paramount acquisition of Paramount Skydance last year was preceded by a $16 million settlement paid by Paramount to then-President Donald Trump following accusations of campaign interference leveled against CBS News over edits made to a 2024 interview with Kamala Harris, as reported by CBS News. While a federal appeals court rejected a similar lawsuit brought by Trump against CNN in November, the precedent has fueled speculation about potential future legal challenges and settlements related to CNN under new ownership.
Adding to these concerns is the editorial direction taken at CBS News since Ellison’s appointment of Bari Weiss as editor-in-chief. Weiss’s tenure has been marked by a noticeable shift towards conservative viewpoints and pro-Trump coverage, according to reports. This has included the hiring of commentators with a history of controversial statements and a perceived downplaying of critical coverage of the former president.
The uncertainty surrounding CNN’s future prompted CEO Mark Thompson to address employees Thursday, urging caution against drawing premature conclusions. “Despite all the speculation you’ve read during this process, I’d suggest that you don’t jump to conclusions about the future until we know more,” Thompson reportedly told staff.
The proposed merger has drawn criticism from Democratic lawmakers, who cite concerns about media consolidation and potential impacts on consumers. California Attorney General Rob Bonta announced that the state’s Department of Justice has launched an investigation into the deal, stating, “we intend to be vigorous in our review.” Senator Elizabeth Warren (D-Massachusetts) characterized the merger as “an antitrust disaster,” warning that “a handful of Trump-aligned billionaires are trying to seize control of what you watch and charge you whatever price they wish,” as reported by CBS News.
The acquisition is not yet finalized and remains subject to regulatory approval. The outcome of the California Department of Justice’s investigation, and potential challenges from other state attorneys general, will likely determine the fate of the deal and the future of Warner Bros. Discovery’s media properties.
