Paramount, owned by David Ellison's Skydance Media, has secured a deal to acquire the entirety of Warner Bros. Discovery (WBD) for approximately $111 billion. The agreement was finalised after streaming giant Netflix declined to raise its competing $82.7 billion offer, walking away from the bidding war for the legacy media conglomerate.
Warner Bros. Discovery announced on Thursday that Paramount's renewed offer of $31 per share constituted a "superior proposal." This triggered a four-day window for Netflix to counter, which it did not. As a result, WBD will pay Netflix a $2.8 billion termination fee to end their existing agreement, a cost that Paramount's new bid has agreed to cover.
Ellison's Media Empire Expands
The acquisition brings a vast portfolio under Paramount's control, including Warner Bros. studios, the HBO brand and its streaming service, the CNN news network, and linear television channels such as TBS, TNT, Discovery, and HGTV. The deal also encompasses WBD's games and entertainment divisions.
David Ellison, whose father is Oracle co-founder and executive chair Larry Ellison, has warned of significant job cuts following the takeover. Larry Ellison, with a net worth of $201 billion according to Bloomberg, has agreed to contribute additional equity to finance the bid. Paramount itself was acquired by Skydance Media just last year with heavy financial backing from the elder Ellison.
Financial and Political Context
Paramount's successful $31-per-share bid values WBD at about $111 billion and includes assuming roughly $33 billion in debt held by the company. This surpassed Netflix's December offer of nearly $83 billion for WBD's studios and streaming service alone, and earlier Paramount bids, including one valued at $108 billion for the full company.
The Ellison family's ownership of major news outlets has attracted political scrutiny. Larry Ellison is a major donor and supporter of former President Donald Trump. David Ellison's ownership of CBS has been seen as sympathetic to the Trump administration, with reports critical of the administration allegedly facing increased scrutiny or being shelved.
Market Reaction and Next Steps
Following the announcement, Netflix shares jumped as much as 10% in extended trading in New York, while shares in Paramount rose 4.5%. The deal marks a major consolidation in the media landscape, creating one of the world's largest entertainment and news conglomerates, with its future strategy and structure now under the direction of the Ellison-owned Paramount.