Netflix Bows Out of Warner Bros. Purchase, Paramount to Win

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I’m not feeling well, and I think it’s because the deal to combine Warner Brothers Discovery and Paramount Skydance is likely complete. It sounds like Skydance made a strong enough offer – Warner’s board called it better than the previous one. As a result, Netflix announced they’re pulling out of the potential partnership, saying the financial benefits just aren’t there anymore and it wasn’t essential to their plans anyway.

Last year, a wave of companies started trying to acquire one another, beginning when Warner Bros. Discovery unexpectedly announced it was for sale. Netflix quickly made an offer to buy WB and HBO Max for around $83 million. Shortly after, Paramount Skydance—a company formed by a recent merger—insisted it also be considered. When Warner Bros. Discovery initially turned down Paramount Skydance’s offer, they launched a very public attempt to take over the company against its will.

Paramount made a second offer of almost $111 billion in cash—$31 per share—to its stakeholders. Netflix had four days to match or exceed that offer, but quickly decided not to compete.

A major hurdle for anyone trying to buy Warner Brothers Discovery is getting approval from the Justice Department, which reviews large mergers. Because the CEO of PSKY, David Ellison, is the son of a close friend of Donald Trump, Larry Ellison, the approval process is likely to be quick. PSKY seems so sure the deal will go through that they’ve promised Warner Brothers Discovery $7 billion as a penalty if the Trump administration blocks it – a surprisingly large guarantee that suggests they’re confident in a positive outcome.

Trump made it clear he supported Paramount in this deal. It would have been extremely difficult for Netflix to compete, even with significant investment. Larry Ellison, one of the wealthiest people globally and a close friend of the president, further tilted the scales. Reed Hastings, the CEO of Netflix, simply couldn’t overcome those obstacles.

This situation is deeply concerning. The increasing concentration of media ownership is harmful to the media landscape both in the U.S. and globally, damaging fair and independent journalism, and ultimately hurting the public. When a few companies control a large share of the market, it often leads to higher prices and less choice – that’s why monopolies are problematic. The recent acquisition of Paramount by Skydance has already led to the suppression of critical voices, particularly those questioning the Trump Administration, and now, with the Ellisons poised to control CBS News and CNN, the problem is only getting worse.

Anyway, I need to go take some Pepcid or something; I fear I may hurl.

Kyle Anderson is a Senior Editor at TopMob and the host of the weekly podcast, Laser Focus, where he dives deep into pop culture. He also writes film and TV reviews, and you can find him on Letterboxd.

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2026-02-27 03:03