In a flurry of deal presents within the excessive tens of billions of {dollars}, the bidding warfare for Warner Bros. Discovery is over. David Ellison-owned Paramount will purchase Warner Bros. Discovery.
On Thursday, Warner Bros. Discovery announced that Paramount Skydance’s latest provide of $31 a share was a “superior proposal,” giving Netflix 4 enterprise days to counter. Netflix then stated it could not elevate its $82.7 billion all-cash bid for the legacy studio, and would walk away from the deal.
“The transaction we negotiated would have created shareholder worth with a transparent path to regulatory approval,” stated Netflix co-CEOs Ted Sarandos and Greg Peters in a press release Thursday. “Nonetheless, we’ve at all times been disciplined, and on the worth required to match Paramount Skydance’s newest provide, the deal is now not financially engaging, so we’re declining to match the Paramount Skydance bid.”
Per the phrases of the unique deal, Warner Bros. Discovery must pay a $2.8 billion termination price to Netflix to finish the prevailing settlement. Paramount’s renewed provide — backed by the world’s sixth-richest individual, Oracle’s government chair, and David Ellison’s father, Larry Ellison — contains paying that breakup price.
The brand new deal will see Paramount, which was purchased simply final 12 months by Ellison’s Skydance Media with heavy monetary backing from his father, buying the whole lot of Warner Bros. Discovery, together with its studios, HBO, its streaming service, its video games and leisure divisions, and linear tv networks like CNN, TBS, TNT, Discovery, and HGTV.
Ellison, whose Paramount already owns main studios, leisure, and information companies, has warned of great job cuts. His possession of reports community CBS has additionally attracted controversy and has largely been seen as a sympathetic flip towards the Trump administration, with reporting crucial of the administration shelved or going through elevated scrutiny by Ellison and CBS’s editor-in-chief, the conservative provocateur Bari Weiss. Larry Ellison is a serious donor and supporter of President Trump.
Netflix had introduced its intent to acquire WBD in December, providing practically $83 billion for its studios and streaming service alone. Regardless of a number of hostile takeover bids by Paramount, Warner Bros. Discovery reaffirmed to shareholders its perception that Netflix’s provide was superior to Paramount’s, which provided $108 billion for the total firm together with its linear tv networks. Paramount’s latest bid, of $31 a share, values WBD at about $111 billion.
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June 9, 2026
Paramount will tackle the about $33 billion in debt held by Warner Bros. Discovery, in keeping with the deal. Larry Ellison, whose web value is $201 billion, according to Bloomberg, has agreed to provide the extra fairness to satisfy Paramount’s bid. Paramount’s market cap is about $12 billion.
The deal can be being financed by a $57.5 billion debt commitment from Financial institution of America Merrill Lynch, Citi, and Apollo World Administration.
Netflix shares jumped as a lot as 10% in after-hours buying and selling in New York. Shares in Paramount had been up 4.5%.
