Paramount Skydance, according to the BBC, is on the verge of acquiring Warner Bros Discovery in a deal valued at approximately $111 billion (£82.2 billion), after Netflix withdrew from the bidding process and declined to increase its offer.
Warner Bros, which was put up for sale last year, announced that Paramount’s latest improved bid was “superior” to that of Netflix. The streaming giant stated that at that price the acquisition was “no longer financially attractive,” emphasizing that the transaction was “desirable, but not at any cost.”
In the final stage, Paramount offered $31 per share in cash, along with additional financial guarantees, including coverage of the termination costs of the previous agreement with Netflix. This surpassed Netflix’s earlier offer valued at around $82 billion, which included part of the assets and debt.
If regulators grant approval, Paramount would take control of the entire Warner Bros studio, including film franchises, HBO Max, as well as television brands such as CNN, Food Network and sports channels. Such consolidation could significantly reshape the American and global media landscape.
However, the process has not yet been concluded. California Attorney General Rob Bonta warned that the “agreement is not a done deal” and that a regulatory investigation has been launched. In addition to California authorities, approval will also be required from the U.S. Department of Justice and European regulators.
Further controversy surrounds Paramount’s ownership structure, which is backed by technology billionaire Larry Ellison, while the company is led by his son David Ellison. Ties to political structures in the United States have raised concerns among parts of the public, particularly regarding the future of CNN, whose parent company is Warner Bros.
Within the industry, this months-long duel between Netflix and Paramount is being interpreted as a turning point for Hollywood. Regardless of the regulators’ final decision, it is clear that a potential merger would bring significant changes to ownership structures, streaming strategies and the future of traditional media networks.
