Paramount Clears Path for $111bn Warner Bros Deal
Paramount Skydance has emerged as the frontrunner to acquire Warner Bros Discovery after Netflix formally withdrew from the bidding process, ending months of competition for the Hollywood studio.
Warner Bros said on Thursday that Paramount’s revised offer, valued at about $111bn (£82.2bn), represented a superior proposal and provided greater certainty than Netflix’s bid. Netflix, which had previously agreed a deal to acquire parts of Warner Bros’ business, declined to increase its offer, saying the price was no longer attractive.
Netflix co-chief executives Ted Sarandos and Greg Peters said the company had remained disciplined throughout the process, describing the takeover as a strategic opportunity rather than a necessity.
The development clears the way for Paramount, backed by billionaire tech entrepreneur Larry Ellison and led by his son David Ellison, to take control of one of Hollywood’s most influential studios, pending regulatory approval.
If approved, the transaction would see Paramount absorb Warner Bros’ film studio, streaming operations and cable networks, including HBO Max, CNN and the Food Network, significantly reshaping the global media landscape.
Regulatory scrutiny remains a key hurdle. California Attorney General Rob Bonta said the proposed merger is under active review and stressed that approval is not guaranteed. The deal will also require clearance from the US Department of Justice and regulators in Europe.
The takeover has drawn political and industry attention, particularly over the future of CNN, which has been a frequent target of criticism from US President Donald Trump. Warner Bros employees at the network have been urged by management to avoid speculation until more details emerge.
Warner Bros put itself up for sale last year amid broader upheaval in the entertainment industry, as studios grapple with rising costs, falling traditional TV revenues and intensifying competition in streaming.
Paramount’s latest offer values Warner Bros at $31 per share and includes commitments designed to smooth the deal’s completion, including covering break-up fees linked to the collapsed Netflix proposal.
David Ellison said the bid delivers “clear value, certainty and speed” for Warner Bros shareholders. If finalised, the merger would unite two of Hollywood’s best-known studios at a time of sweeping consolidation across the media sector.
