Hustler Words – The high-stakes acquisition battle for Warner Bros. Discovery (WBD) has concluded with a dramatic turn, as streaming giant Netflix unexpectedly withdrew its bid, paving the way for David Ellison’s Paramount to seize control of the vast media empire. This monumental deal sees Paramount, backed by the formidable financial might of Oracle’s Larry Ellison, acquiring WBD in a transaction valued at approximately $111 billion.
Netflix’s decision to walk away came after Paramount Skydance presented an enhanced offer of $31 per share, which Warner Bros. Discovery’s board deemed a "superior proposal." This move triggered a four-business-day window for Netflix to counter. However, in a statement released Thursday, Netflix co-CEOs Ted Sarandos and Greg Peters confirmed the company would not raise its previous $82.7 billion all-cash offer. "The transaction we negotiated would have created shareholder value with a clear path to regulatory approval," they stated, adding, "However, we’ve always been disciplined, and 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."
Under the terms of the original agreement, Warner Bros. Discovery is obligated to pay Netflix a $2.8 billion termination fee. Paramount’s revised offer strategically incorporates the absorption of this breakup fee, sweetening the deal for WBD shareholders.
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The acquisition marks a significant expansion for Paramount, which was itself acquired by Ellison’s Skydance Media just last year with substantial backing from his father, Larry Ellison, the world’s sixth-richest person. The newly formed conglomerate will encompass Warner Bros. Discovery’s entire portfolio, including its iconic studios, premium streaming service HBO, extensive games and entertainment divisions, and a powerful roster of linear television networks such as CNN, TBS, TNT, Discovery, and HGTV.
David Ellison, whose Paramount already commands a substantial presence in major studios, entertainment, and news sectors, has previously indicated the likelihood of significant job reductions post-acquisition. His existing ownership of news network CBS has not been without controversy, drawing scrutiny for what critics perceive as a sympathetic editorial lean towards the Trump administration. Reports of critical coverage being shelved or facing heightened scrutiny by Ellison and CBS’s editor-in-chief, conservative provocateur Bari Weiss, have fueled these concerns. Larry Ellison is a known major donor and supporter of President Trump.
Netflix initially signaled its intent to acquire WBD in December, with an offer nearing $83 billion for its studios and streaming service alone. Despite several aggressive takeover attempts by Paramount, Warner Bros. Discovery had consistently affirmed to its shareholders that Netflix’s initial proposal was superior to Paramount’s previous $108 billion offer for the entire company, including its linear networks. Paramount’s latest, successful bid of $31 per share ultimately valued WBD at approximately $111 billion.
Financially, the deal is robust. Paramount will assume Warner Bros. Discovery’s existing debt of around $33 billion. Larry Ellison, with a net worth of $201 billion according to Bloomberg, has committed to supplying the necessary additional equity to fulfill Paramount’s substantial bid. The transaction is further bolstered by a $57.5 billion debt commitment from a consortium of financial powerhouses including Bank of America Merrill Lynch, Citi, and Apollo Global Management, dwarfing Paramount’s current market capitalization of about $12 billion.
The market reacted swiftly to the news. Netflix shares experienced a jump of as much as 10% in after-hours trading in New York, signaling investor approval of the company’s disciplined financial stance. Paramount shares also saw a positive bump, rising 4.5%. This strategic pivot reshapes the media landscape, creating a new titan under the Ellison family’s growing influence.
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