Netflix has withdrawn its $82.7 billion acquisition bid for Warner Bros. Discovery after the company received a superior proposal from Paramount Skydance, valuing the media giant at approximately $111 billion.
The deal, backed by Larry Ellison, Oracle’s executive chair, will see Paramount acquire the entirety of Warner Bros. Discovery, creating a vast media conglomerate that encompasses major Hollywood studios, streaming services, and cable news networks. The transaction values Warner Bros. Discovery at $31 per share and includes the assumption of roughly $33 billion in debt.
Warner Bros. Discovery stated that Paramount’s offer of $31 per share constituted a “superior proposal,” triggering a clause that allowed Netflix four business days to improve its bid. Netflix co-CEOs Ted Sarandos and Greg Peters declined to match the offer, stating, “At the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
The acquisition includes Warner Bros. studios, HBO, the streaming service, and linear networks such as CNN, TBS, TNT, Discovery, and HGTV. Paramount will take on Warner Bros. Discovery’s debt load as part of the transaction. Larry Ellison has agreed to supply additional equity to fulfill the bid, leveraging his substantial net worth, reported by Bloomberg to be $201 billion.
The deal is financed by a $57.5 billion debt commitment from Bank of America Merrill Lynch, Citi, and Apollo Global Management. Paramount’s market capitalization is approximately $12 billion. As a result of the deal, Warner Bros. Discovery will pay a $2.8 billion termination fee to Netflix, which Paramount has agreed to cover.
The acquisition resolves a bidding war that began in December and positions the Ellison family as a dominant force in the entertainment and news landscape. David Ellison, who owns CBS and acquired Paramount Skydance last year with significant financial backing from his father, Larry Ellison, has faced controversy regarding editorial decisions at the network. Larry Ellison is also known to be a major donor and supporter of President Trump.
Following the news, Netflix shares jumped as much as 10% in after-hours trading, while shares in Paramount were up 4.5%. Warner Bros. Discovery had previously rejected hostile bids from Paramount in favor of Netflix’s initial offer for its studios and streaming assets alone.
