Netflix–Warner Bros Deal Collapses In A Shocking Twist; Here’s How Paramount Won The $82 Billion Mega Studio War

Paramount: In a dramatic turn in one of Hollywood’s biggest corporate battles, Netflix has stepped back from its attempt to acquire Warner Bros. Discovery, paving the way for Paramount Global and Skydance Media to take control of the iconic studio.

Warner Bros. Discovery confirmed that Paramount’s revised offer was “superior,” prompting Netflix to decline matching the higher bid. The streaming giant said the deal no longer made financial sense at the new price, signalling an end to the months-long bidding war.

Paramount Sweetens Offer As Netflix Stays ‘Disciplined’

Paramount raised its bid to $31 per share in cash, up from $30, outbidding Netflix’s earlier $27.75 per share proposal that valued the deal at roughly $82 billion including debt. In a further move to strengthen its position, Paramount agreed to pay a $7 billion reverse break-up fee if the deal collapses and cover the $2.8 billion termination fee Warner Bros. would owe Netflix.

Netflix co-CEOs Ted Sarandos and Greg Peters said in a statement that while the transaction could have created shareholder value, the company remained “disciplined” and would not pursue a deal at any price. “This was always a ‘nice to have’ at the right valuation, not a ‘must have’,” they said.

Paramount CEO David Ellison welcomed the Warner Bros. board’s backing, calling the proposal one that offers “superior value, certainty and speed to closing.”

CNN, HBO Max And Media Landscape At Stake

If regulators approve the merger, Paramount would gain control of Warner Bros.’ film studio, HBO Max streaming operations, and television networks including CNN and Food Network. The consolidation could significantly reshape the US media landscape.

The future of CNN has drawn particular attention amid political scrutiny. Former US President Donald Trump has repeatedly criticized the network and previously suggested it should be sold as part of any Warner Bros. deal. CNN chief Mark Thompson has urged staff not to speculate until regulatory clarity emerges.

Paramount’s ties to tech billionaire Larry Ellison and past backing from Jared Kushner’s Affinity Partners have also attracted scrutiny, particularly regarding regulatory approvals.

(Via Agency Inputs)

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