A dramatic takeover battle for one of Hollywood’s most historic studios appears to be nearing a turning point after Netflix decided not to increase its offer for Warner Bros. Discovery, clearing the path for Paramount Global to move forward with a deal valued at about $111bn.
Warner Bros announced that Paramount’s revised proposal was “superior” to Netflix’s earlier bid, effectively ending months of fierce competition between the streaming giant and the traditional media company for control of the storied studio and its vast portfolio of film, television and media assets.
Netflix executives said the company had opted not to match the higher offer, arguing that the acquisition no longer made financial sense at the increased price.
In a joint statement, co-chief executives Ted Sarandos and Greg Peters emphasized that the company remained disciplined about major investments.
“This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” they said.
The move comes after Warner Bros had initially agreed last December to sell parts of its film and streaming operations to Netflix in a deal valued at roughly $82bn including debt.
However, Paramount later launched a rival proposal and recently increased its bid, offering $31 per share to acquire the entire company.
If completed, the merger could significantly reshape the global entertainment landscape. Paramount would gain control of Warner Bros’ film studio, major television networks and streaming platforms, including HBO Max.
The deal would also place major media brands, including CNN, under Paramount’s expanding corporate umbrella.
The proposed acquisition is backed by technology billionaire Larry Ellison and led by his son, David Ellison, whose production company Skydance has been closely involved in Paramount’s strategic expansion plans.
Despite Warner Bros’ endorsement of the new offer, the deal faces significant regulatory scrutiny before it can be finalized.
Authorities in the United States and Europe are expected to review the transaction closely, with concerns ranging from market concentration to potential political influence.
California Attorney General Rob Bonta said the merger is “not a done deal,” confirming that the state’s Department of Justice has opened an investigation. Federal regulators in Washington, including the U.S. Department of Justice, will also need to sign off on the agreement.
The potential merger has raised broader concerns across the media industry, particularly regarding the future of CNN, one of the country’s largest news organizations, which is currently owned by Warner Bros. Discovery.
Some observers worry that ownership changes could influence newsroom operations or strategic direction.
Political factors have also drawn attention to the deal. The funding behind Paramount’s bid and connections between major investors and political figures, including U.S. President Donald Trump, have fueled debate over possible implications for media independence.
Within Hollywood, reactions to the bidding war have been mixed.
Some critics argued that a takeover by a major streaming platform could accelerate the decline of traditional cinema, while others expressed concerns about consolidation among established studios and its potential impact on jobs and creative output.
Should regulators approve the transaction, Paramount’s acquisition of Warner Bros would mark one of the largest deals in entertainment history, reshaping both the studio system and the increasingly competitive streaming market.
Industry analysts say the decision could influence how major media companies position themselves in the evolving battle for global audiences.