Netflix conceded defeat Thursday in its bid to acquire Warner Bros. Discovery, clearing the path for Paramount Skydance to finalize a $110 billion deal, a figure significantly exceeding Netflix’s proposed $72 billion offer. The decision followed Paramount’s willingness to pay $31 per share, including $45.7 billion in equity personally guaranteed by Oracle co-founder Larry Ellison, David Ellison’s father, according to reports from USA Today.
The outcome marks a dramatic shift in the entertainment landscape, concluding a months-long struggle for control of the storied Warner Bros. Studio and its extensive portfolio of assets, including HBO, HBO Max and a range of cable networks. Netflix initially secured a deal in December, but Paramount, bolstered by its recent merger with Skydance, aggressively pursued a counteroffer.
According to a statement released by Netflix CEOs Ted Sarandos and Greg Peters, the company ultimately determined that matching Paramount’s offer was “no longer financially attractive.” They characterized the acquisition as a “nice to have” rather than a “must have,” suggesting a reluctance to overextend financially for the Warner Bros. Assets. A source familiar with the deliberations, speaking to Variety, indicated that Sarandos proactively contacted Warner Bros. Discovery CEO David Zaslav to inform him of Netflix’s withdrawal once it became clear a competitive bid was untenable.
The acquisition is expected to trigger significant restructuring within the combined Paramount-Warner Bros. Entity. David Ellison, Paramount’s CEO, has a track record of cost-cutting measures, having initiated layoffs of 2,000 employees at Paramount following its merger with Skydance in October 2025. Analysts anticipate further job reductions as the companies seek to realize an estimated $6 billion in savings, as reported by Boston.com. This consolidation is likely to result in fewer film and television productions, driven by overlap in production studios and cable channels – specifically, the pairing of Paramount’s Nickelodeon with Warner Bros.’ Cartoon Network, and Showtime with HBO.
Industry observers anticipate the creation of a bundled streaming service combining Paramount+ and HBO Max, offering consumers a cost-saving option. The potential impact on the existing Disney-Hulu-HBO Max bundle remains uncertain, though sources suggest Paramount is unlikely to disrupt that arrangement.
The deal still faces regulatory hurdles, requiring approval from the Trump administration and international governments. While industry experts largely expect the merger to proceed, the scale of the consolidation raises concerns about potential antitrust issues. The regulatory review process could delay the finalization of the acquisition, leaving the future of both companies in a state of flux.
