The high-stakes bidding war for Warner Bros. Discovery has concluded. Paramount, led by David Ellison and backed by Oracle chairman Larry Ellison, has officially secured the media giant in a transaction valued at approximately $111 billion, effectively ending Netflix’s pursuit of the studio.
Netflix Withdraws from Acquisition Race
The shift occurred this Thursday when Warner Bros. Discovery officially declared Paramount’s latest offer of $31 per share as a “superior proposal.” This designation triggered a four-day window for Netflix to submit a counter-offer. Netflix ultimately declined to increase its previous $82.7 billion all-cash bid, choosing to exit the deal entirely.
“While the transaction we negotiated offered a clear path to regulatory approval, we have always remained disciplined,” stated Netflix co-CEOs Ted Sarandos and Greg Peters. “At the price required to match Paramount’s latest offer, the deal is no longer financially attractive.”
The Cost of the Breakup
Under the terms of the original agreement, Warner Bros. Discovery is obligated to pay a $2.8 billion termination fee to Netflix. Paramount has agreed to cover this penalty as part of its renewed acquisition bid. The massive financial backing for the deal is spearheaded by Larry Ellison, the world’s sixth-richest individual, alongside a $57.5 billion debt commitment from major financial institutions, including Bank of America Merrill Lynch, Citi, and Apollo Global Management.
What Paramount Gains in the Merger
This acquisition grants Paramount full control over the extensive Warner Bros. Discovery portfolio, which includes:
- HBO and its prestige content library
- Major film and television studios
- Streaming platforms
- Gaming and entertainment divisions
- Linear networks, including CNN, TBS, TNT, Discovery, and HGTV
The deal also requires Paramount to absorb Warner Bros. Discovery’s existing debt, which sits at approximately $33 billion.
Controversy and Market Impact
The acquisition has sparked immediate concerns regarding potential job cuts and the editorial direction of the newly acquired news assets. David Ellison’s current stewardship of CBS has already faced scrutiny, with critics pointing to instances where reporting critical of the Trump administration was allegedly shelved under the guidance of editor-in-chief Bari Weiss. Larry Ellison is a prominent donor and political supporter of President Trump.
Following the announcement, market reactions were swift: Netflix shares surged by 10% in after-hours trading, while Paramount shares saw a 4.5% increase.