Paramount Skydance appears poised to win a months-long takeover contest for Warner Bros. Discovery after Netflix declined to increase its offer on Thursday.
Warner Bros. Discovery’s board said Paramount’s bid of $31 a share topped the $27.75-per-share agreement previously reached with Netflix. Netflix said Paramount Skydance’s revised offer made the transaction “no longer financially attractive.” The company added that, while the deal it negotiated would have created shareholder value and had a clear path to regulatory approval, matching Paramount’s price would be inconsistent with Netflix’s financial discipline.
In December, Netflix had signed a binding agreement to acquire Warner’s studio and streaming operations. With Netflix opting not to submit a higher counteroffer, Warner’s board is now free to terminate that agreement and move forward with the Paramount proposal.
“Once our board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders,” Warner Bros. Discovery CEO David Zaslav said, adding the companies are eager to begin combining efforts to tell stories that move audiences. Paramount did not immediately comment.
The potential deal has drawn intense scrutiny and been described by some as one of the largest media bidding contests in a generation. Unlike Netflix, which sought only Warner’s studio and streaming assets, Paramount’s offer covers the entire company — including broadcast and cable networks such as CNN and CBS. A merger would combine two major studios and bring together streaming services HBO Max and Paramount+ under one corporate roof.
Critics worry the consolidation could concentrate industry power, prompt layoffs, reduce diversity in filmmaking and further strain consumers already facing rising streaming costs. Observers have also pointed to political ties: Paramount Skydance CEO David Ellison and investor Larry Ellison have known connections to former President Donald Trump, a factor cited in public concern. U.S. lawmakers and entertainment trade groups have flagged potential competitive and editorial implications.
After Paramount’s merger with Skydance last year, CBS experienced editorial changes, including the appointment of Free Press founder Bari Weiss as editor-in-chief — a development noted by those wary of further consolidation.
The outcome now rests with Warner Bros. Discovery’s board and the regulatory review ahead. Edited by Wesley Dockery.