Warner Bros. Discovery’s board of directors on Thursday designated Paramount Skydance’s offer as “superior,” effectively ending Netflix’s bid to acquire the media giant and clearing the path for a reshaping of the U.S. Entertainment landscape. The decision, announced after months of competition between the streaming and studio powerhouses, sets the stage for a merger that has sparked concern among Democrats about the potential for increased political influence over news and entertainment content.
Netflix co-CEOs Ted Sarandos and Greg Peters confirmed the withdrawal in a statement, citing financial considerations. “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,” they said. Paramount’s chairman and CEO, David Ellison, responded that his company was “pleased WBD’s Board has unanimously affirmed the superior value of our offer, which delivers to WBD shareholders superior value, certainty and speed to closing.” WBD CEO David Zaslav echoed that sentiment, stating the merger would “create tremendous value for our shareholders” once formally adopted by the board.
The proposed merger brings into sharp focus the potential for political alignment within a major media conglomerate. David Ellison’s father, Larry Ellison, is a prominent donor to Republican causes and a staunch ally of former President Donald Trump. Since taking over at CBS last year, David Ellison has overseen a noticeable shift to the right in the network’s editorial direction, including the appointment of conservative-leaning Bari Weiss as editor-in-chief and a $16 million settlement with Trump following a defamation lawsuit over CBS News’ 2024 campaign coverage . This has led to layoffs and resignations within the news division.
The prospect of CNN, frequently targeted by Trump with the label “fake news,” falling under the control of the Ellison family has particularly alarmed Democrats. CNN CEO Mark Thompson attempted to reassure staff in a Thursday email obtained by the Guardian, urging them “not to jump to conclusions about the future until we understand more.”
The path to a completed deal is far from certain. While WBD’s board has signaled its preference for the Paramount Skydance offer, the merger still requires regulatory approval from the U.S. Justice Department and the European Commission, as well as scrutiny from state attorneys general. California Attorney General Rob Bonta announced that the California Department of Justice has opened an investigation into the proposed merger, vowing a “vigorous” review.
Senator Elizabeth Warren (D, Mass.) characterized the deal as an “antitrust disaster” that threatens higher prices and fewer choices for consumers, and questioned the influence of Trump-aligned billionaires. “What did Trump officials tell the Netflix CEO today at the White House?” Warren asked in a statement. Senator Cory Booker (D, N.J.), the top Democrat on the Senate Judiciary antitrust subcommittee, has invited David Ellison to testify at a hearing next week, according to Deadline. Eight senators, including Warren and Booker, have demanded that Paramount preserve all records related to the acquisition .
The bidding war began in June 2025, when WBD announced plans to separate its streaming and studio businesses from its cable and TV assets. By November, Paramount, Comcast, and Netflix had reportedly submitted bids. Netflix initially appeared to be the frontrunner, offering $82.7 billion for WBD’s assets, including HBO and the “Harry Potter” franchise. However, the deal faced opposition from both sides of the aisle, with Senator Mike Lee (R, Utah) raising competition concerns and Trump suggesting he might intervene.
Paramount continued to pursue WBD, even after the initial Netflix offer. The company filed a lawsuit in January seeking to compel WBD to disclose details of its negotiations with Netflix. The revised Paramount Skydance proposal includes a $31 per share offer, a “ticking fee” of $0.25 per share per quarter, and a $7 billion regulatory termination fee. Paramount would also assume a $2.8 billion termination fee owed to Netflix.
Despite the WBD board’s preference, the deal faces significant hurdles, including potential legal challenges and continued scrutiny from regulators and lawmakers. The outcome remains uncertain as the proposed merger heads toward a shareholder vote on March 20 and further review by antitrust authorities.
