The bidding war for Warner Bros. Discovery has concluded. Paramount, owned by David Ellison, will acquire the media giant. This decision came after Warner Bros. Discovery’s board declared a revised offer from Paramount Skydance of $31 per share to be a “superior proposal.” This gave Netflix four business days to counter.
Netflix declined to raise its all-cash bid of $82.7 billion and withdrew from the deal. Netflix co-CEOs Ted Sarandos and Greg Peters stated that while their transaction would have created shareholder value, matching the latest Paramount Skydance offer was no longer financially attractive. As a result, Warner Bros. Discovery will pay Netflix a $2.8 billion termination fee to end their existing agreement. Paramount’s renewed offer includes covering that breakup fee.
The new deal will see Paramount, which was itself acquired by Skydance Media last year, purchasing all of Warner Bros. Discovery. This includes its film and television studios, HBO, its streaming service, games and entertainment divisions, and linear networks such as CNN, TBS, TNT, Discovery, and HGTV. David Ellison has warned that significant job cuts are expected following the acquisition.
Ellison’s ownership of news network CBS has attracted controversy, with reports suggesting a sympathetic turn toward the Trump administration. Critical reporting has allegedly been shelved or faced increased scrutiny under Ellison and CBS editor-in-chief Bari Weiss. Larry Ellison, David’s father and a major financial backer of the deal, is a noted donor and supporter of former President Trump.
Netflix had originally announced its intent to acquire Warner Bros. Discovery in December, offering nearly $83 billion primarily for its studios and streaming service. Paramount’s latest bid, valuing Warner Bros. Discovery at approximately $111 billion, prevailed over Netflix’s offer. Paramount will also assume roughly $33 billion in debt held by Warner Bros. Discovery.
Larry Ellison, with a net worth of $201 billion, has agreed to supply additional equity to fulfill the bid. The acquisition is further financed by a $57.5 billion debt commitment from Bank of America Merrill Lynch, Citi, and Apollo Global Management. Following the news, Netflix shares rose as much as 10% in after-hours trading, while Paramount shares increased by 4.5%.