The nearly $111 billion marriage would unite Paramount and Warner film studios, streamers and television properties — including CNN — under the control of the wealthy Ellison family. On Thursday night, Chief Executive Officer David Zaslav called David Ellison and Ted Sarandos to let them know the results, with the board deeming Ellison and Paramount Skydance Corp.'s latest bid superior to that of Netflix. A couple hours later, Sarandos called Zaslav back to inform him that Netflix was out.
Warner Bros. Discovery announced that Paramount Skydance's newest offer of $31 a share was a "superior proposal," giving Netflix four business days to counter, but Netflix then said it would not raise its $82.7 billion all-cash bid for the legacy studio, and would walk away from the deal. The timing caught many by surprise. Netflix CEO Ted Sarandos had just flown to Washington, D.C. to attend meetings at the White House, and just hours after he was pictured departing the White House, he dropped out of the bidding war.
Warner Bros. Discovery on Friday formally signed an agreement to be acquired by Paramount Skydance, setting the stage for one of the most consequential media mergers in recent history. But the deal isn't final yet. Paramount said the merger will create $6 billion of synergies and cost savings that will almost certainly lead to thousands of layoffs. Sen. Elizabeth Warren called the deal an "antitrust disaster," while California's attorney general vowed a "vigorous" investigation. The merger is expected to close in the third quarter of 2026, subject regulatory clearances and approval by WBD shareholders, with a vote expected in the early spring.