Paramount Edges Out Netflix in Warner Bros Bid War
Netflix has stepped back from its plan to acquire Warner Bros. Discovery. As a result, it effectively cleared the path for Paramount Skydance to gain control of one of the Hollywood’s most storied studios after a months-long contest. On Thursday, Warner Bros said that Paramount’s revised proposal was “superior” to the offer from Netflix, which declined to raise its bid.
Company executives explained that they chose not to match the new valuation because “the deal is no longer financially attractive” at that price. So finally, Paramount has now stood as the frontrunner to secure the studio’s vast film catalogue and global media assets. It is a move that could significantly reshape the entertainment landscape.
Paramount has recently enhanced its purchase plan by agreeing to increase the proposal by $1 per share. In response, Netflix co-chief executives Ted Sarandos and Greg Peters stated that, “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we’ve always been disciplined”. They further added that, “This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price”.
Political Scrutiny Over CNN’s Future in Warner Bros Deal
The development has come shortly after Sarandos visited the White House. It had underscored the wider political scrutiny that surrounds the proposed acquisition. If regulators approve the deal, Paramount would assume control of CNN along with other prominent entertainment networks.
Trump has repeatedly criticized CNN’s coverage of his administration. In December, he suggested that the network should be sold as part of any Warner Bros transaction. He also called its leadership “corrupt or incompetent”. Meanwhile, CNN chief Mark Thompson has advised staff to not to speculate about the network’s future until additional details emerge.
Paramount’s Backing Raises Stakes in Warner Bros Deal
Paramount’s bid has drawn attention because of financial backing from technology billionaire Larry Ellison and leadership by his son, David Ellison. Although Jared Kushner initially supported the offer through his firm, Affinity Partners, he later withdrew amid scrutiny.
If approved, Paramount would integrate Warner Bros’ HBO Max streaming subscribers into its portfolio. It also expands its holdings across film, television, and sports programming. The company already operates networks such as CBS and Comedy Central.
Across Hollywood, many analysts are viewing this bidding contest as a turning point. While critics feared that a Netflix takeover might sideline traditional cinema, others remain cautious about Paramount’s political ties. Nevertheless, Warner Bros’ sale is expected to have wide-ranging consequences for employment and production across the industry, which has already faced sustained cutbacks in recent years.
Web Resources on the Warner Bros-Paramount Deal
1. WashingtonPost.com: Netflix backs out of Warner Bros. purchase, clearing a path for Paramount
2. Bloomberg.com: Netflix Drops Warner Bros. Bid
3. FoxBusiness.com: Netflix backs out of Warner Bros bidding war
4. AcademicBlock.com: Netflix Places Highest Bid for Warner Bros. Studio Deal