Netflix declined to match a superior proposal from Paramount Skydance for Warner Bros. Discovery, ending its $82.7 billion acquisition bid. Paramount, backed by Larry Ellison, will acquire the entirety of Warner Bros. Discovery for approximately $111 billion. Warner Bros. Discovery will pay a $2.8 billion termination fee to Netflix, which Paramount has agreed to cover.
The deal creates a media conglomerate encompassing major Hollywood studios, streaming services, and cable news networks. It resolves a bidding war that began in December and positions the Ellison family as a dominant force in the entertainment and news landscape. 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.” This designation triggered a clause allowing Netflix four business days to improve its bid. Netflix co-CEOs Ted Sarandos and Greg Peters said the company declined to match the offer. “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 executives stated.
Paramount’s acquisition includes Warner Bros. studios, HBO, the streaming service, and linear networks such as CNN, TBS, TNT, Discovery, and HGTV. The transaction requires Paramount to take on Warner Bros. Discovery’s debt load. Larry Ellison, Oracle’s executive chair, has agreed to supply additional equity to fulfill the bid.
The acquisition is financed by a $57.5 billion debt commitment from Bank of America Merrill Lynch, Citi, and Apollo Global Management. Larry Ellison’s net worth is $201 billion, according to Bloomberg. Paramount’s market capitalization is approximately $12 billion.
Netflix shares jumped as much as 10% in after-hours trading. 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. Netflix announced its intent to acquire the company in December with an offer of nearly $83 billion. Paramount Skydance was acquired by David Ellison last year with significant financial backing from his father.
David Ellison owns CBS and has faced controversy regarding editorial decisions at the network. Larry Ellison is a major donor and supporter of President Trump.
