Paramount Skydance, owned by David Ellison, has emerged as the winner in the race to acquire Warner Bros. Discovery. The decisive moment was Netflix's withdrawal from further bidding, despite a prior agreement from December 2024. The Warner Bros. board deemed Paramount's offer of $31 per share a "superior proposal." The transaction, with a total value of $111 billion, now awaits rigorous scrutiny from antitrust authorities in California and at the federal level.

Paramount Skydance Victory

David Ellison defeated Netflix with a $111 billion offer for the entirety of Warner Bros. Discovery's assets.

Netflix Withdraws from the Fight

The streaming giant withdrew from the bidding, calming investors and boosting the company's stock price by 10%.

Regulatory Hurdles

The California Attorney General and U.S. senators announce a strict antitrust review of the merger.

The media landscape in Hollywood is undergoing a fundamental transformation following the announcement that Paramount Skydance will acquire Warner Bros. Discovery (WBD). The process accelerated on Thursday when the WBD board officially recognized Paramount's offer as more favorable than the existing agreement with Netflix. The streaming giant, which had a four-day window to match the offer, unexpectedly abandoned the fight, triggering an enthusiastic market reaction and a nearly 10 percent surge in Netflix's stock. Investors breathed a sigh of relief, having previously feared the company's financial strain from purchasing traditional television assets. As part of the settlement, Paramount will pay Netflix a $2.8 billion breakup fee. Hollywood history already knows major consolidations, such as Disney's acquisition of 21st Century Fox in 2019 for $71 billion, which shaped the digital entertainment market for years. Paramount's winning bid amounts to $111 billion, translating to $31 per WBD share. Unlike Netflix's selective offer, David Ellison's proposal covers the "entire dome" of assets, including the prestigious film studio, the HBO brand, and cable channels struggling with advertising issues, such as CNN and Discovery Channel. David Zaslav, the current CEO of WBD, expressed enthusiasm for the potential of the combined forces of Paramount and Warner Bros. However, this enthusiasm is dampened by regulatory bodies. California Attorney General Rob Bonta announced a rigorous investigation, emphasizing that the merger of the two film industry titans is not yet a done deal and must undergo a full antitrust procedure. „Paramount/Warner Bros is not a done deal. These two Hollywood titans have not cleared regulatory scrutiny.” — Rob Bonta The political echo of the deal reached Washington, where Senator Elizabeth Warren called the merger an "antitrust disaster," questioning the influence of the Donald Trump administration on the negotiation outcome. Meanwhile, Senator Cory Booker called on David Ellison to testify before the Senate Judiciary Committee. Within Warner Bros. structures, sentiments are mixed; CNN employees fear restructuring and role duplication after merging with CBS's news division. Despite these concerns, CNN's CEO, Mark Thompson, appealed to staff to remain calm and focus on journalistic work in the face of the upcoming election year.

Perspektywy mediów: Highlights threats to jobs, freedom of speech, and the political influence of billionaires allied with Donald Trump on the media market. Emphasizes benefits for shareholders, improved financial results, and the necessity of consolidation for the survival of traditional film studios.

Mentioned People

  • David Ellison — CEO of Paramount Skydance and chief architect of the Warner Bros. acquisition.
  • Ted Sarandos — Co-CEO of Netflix, who negotiated terms at the White House.
  • Rob Bonta — California Attorney General leading the investigation into the merger.
  • David Zaslav — CEO of Warner Bros. Discovery.
  • Elizabeth Warren — U.S. Senator criticizing the merger as a threat to competition.