In a dramatic conclusion to a multi-billion dollar corporate takeover battle, Paramount Global, controlled by David Ellison, has secured a deal to acquire the entirety of Warner Bros. Discovery (WBD). The agreement, valued at approximately $111 billion, was finalised after streaming giant Netflix declined to match Paramount's latest offer, walking away from the negotiations.
The acquisition, announced on Thursday, includes WBD's iconic film and television studios, the HBO brand and its streaming service, its games and entertainment divisions, and a portfolio of linear television networks including CNN, TBS, TNT, Discovery, and HGTV. Paramount, itself acquired by Ellison's Skydance Media last year, will also assume around $33 billion in WBD debt.
Netflix Withdraws After Paramount's "Superior Proposal"
Warner Bros. Discovery's board determined that Paramount Skydance's renewed offer of $31 per share constituted a "superior proposal," triggering a four-day window for Netflix to counter. Netflix, which had made an $82.7 billion all-cash bid in December for WBD's studios and streaming assets alone, announced it would not raise its offer.
"The transaction we negotiated would have created shareholder value with a clear path to regulatory approval," stated Netflix co-CEOs Ted Sarandos and Greg Peters. "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."
As a result of withdrawing, Netflix will receive a $2.8 billion termination fee from WBD, a cost which Paramount's new deal has agreed to cover.
Ellison's Financial Backing and Strategic Vision
The acquisition is heavily financed by David Ellison's father, Larry Ellison, the executive chair of Oracle and the world's sixth-richest person with a net worth of $201 billion, according to Bloomberg. He has committed to supplying the additional equity required to fulfill the bid, with Paramount's market capitalisation standing at roughly $12 billion.
A $57.5 billion debt commitment from Bank of America Merrill Lynch, Citi, and Apollo Global Management further underpins the deal. The consolidation creates one of the world's largest media conglomerates, but Ellison has already warned of significant job cuts following the merger.
Political Scrutiny and Market Reaction
Ellison's ownership has attracted political scrutiny, particularly regarding news operations. His control of CBS has been viewed as sympathetic towards the Trump administration, with reports critical of the former president allegedly being shelved or facing increased editorial scrutiny from Ellison and conservative commentator Bari Weiss, who serves as editor-in-chief. Larry Ellison is a major donor and supporter of former President Donald Trump.
Financial markets reacted positively to the clarity. Netflix shares surged as much as 10% in after-hours trading following its withdrawal, while Paramount's stock rose 4.5%. The deal, which values WBD significantly higher than Netflix's initial bid for a partial acquisition, now awaits regulatory approval and is expected to reshape the global media landscape.