Netflix Walks Away From Warner Bros Deal Leaving Paramount in Control

Netflix has officially pulled out of its effort to buy Warner Bros Discovery, opening the door for Paramount Skydance to take over one of Hollywood’s oldest and most powerful studios. The decision was made public on February 26 and was reported by outlets including The Guardian.

The exit came after the Warner Bros board reviewed a higher offer from Paramount and decided it was better than the agreement already in place with Netflix. Once that offer was labeled superior, Netflix chose not to compete further and walked away from the deal.

Netflix had been interested in buying only parts of the company, mainly the movie studio and streaming business. But when Paramount raised the price, Netflix decided it was not worth stretching its budget. In a joint statement, co-CEOs Ted Sarandos and Greg Peters explained their choice.

They said Netflix was staying disciplined with its spending. They added that at the price needed to match Paramount Skydance’s offer, the deal was no longer financially attractive. They also said Warner Bros was a great company, but the deal was something they wanted only at the right price, not at any price.

With Netflix out, Paramount Skydance is now the only bidder left. The takeover is expected to be worth around $110 billion. Unlike Netflix’s plan, Paramount wants to buy the entire company. That includes the film studio, streaming services, cable channels, and the news network CNN.

Paramount Skydance CEO David Ellison reacted positively to the board’s decision. He said he was pleased the board had recognized the superior value, certainty, and speed to closing offered by his company. His comments were shared widely in media coverage of the deal.

The possible sale has sparked concern about the future of CNN. Former President Donald Trump has repeatedly criticized the network and recently suggested it should be sold as part of any major merger.

According to reporting from The Guardian, Larry Ellison, David Ellison’s father and a key financial backer of the deal, has discussed possible programming and staffing changes at CNN with White House officials.

Inside CNN, the news has caused anxiety among employees. Reports say CEO Mark Thompson sent an internal email asking staff not to assume the worst and to wait until more information is available.

If the merger goes through, CNN would end up under the same corporate roof as CBS News, which has already gone through leadership changes and layoffs since the Skydance and Paramount merger last year.

Despite the uncertainty at the corporate level, Warner Bros Discovery is still moving forward with major creative projects. The company is developing a new Harry Potter television series for HBO that is expected to run for about ten years and follow the books more closely than the films.

Paramount has also been focused on its biggest franchises. The studio recently found success with Gladiator II and is now working on a third Top Gun movie starring Tom Cruise. It is also expanding the Yellowstone franchise with several new spin-off shows.

As reported by The Guardian and other outlets, many in the industry are watching closely. Some believe this deal could signal a new round of consolidation in Hollywood. If completed, the combined reach of HBO, Paramount Plus, CNN, and CBS would create a media giant unlike anything seen before.

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