The takeover battle for Warner Bros. Discovery has ended, with Paramount — controlled by David Ellison’s Skydance Media — securing the deal after Netflix declined to raise its offer.

Netflix Walks Away From $82.7B Bid

Netflix confirmed it would not increase its $82.7 billion all-cash bid for Warner Bros. Discovery’s studios and streaming assets.

The streaming giant said matching Paramount Skydance’s revised offer was no longer financially attractive.

Under the terms of the prior agreement, Warner Bros. Discovery must pay Netflix a $2.8 billion termination fee. Paramount’s new proposal includes covering that breakup fee.

Following the announcement, Netflix shares rose as much as 10% in after-hours trading, while Paramount gained roughly 4.5%.

Paramount’s $111B Valuation

Paramount Skydance’s winning offer of $31 per share values Warner Bros. Discovery at approximately $111 billion.

The acquisition includes:

  • Film and television studios
  • HBO and its streaming platform
  • Gaming and entertainment divisions
  • Linear television networks including CNN, TBS, TNT, Discovery, and HGTV

Paramount will also assume roughly $33 billion in debt currently held by Warner Bros. Discovery.

Ellison-Backed Financing Structure

The transaction is heavily backed by Larry Ellison, executive chair of Oracle and father of David Ellison.

According to Bloomberg, Larry Ellison — whose net worth stands near $201 billion — has agreed to provide additional equity financing to complete the deal.

The acquisition package also includes a $57.5 billion debt commitment from:

  • Bank of America Merrill Lynch
  • Citi
  • Apollo Global Management

Paramount’s current market capitalization is approximately $12 billion, underscoring the scale of the leveraged transaction.

Strategic and Political Implications

David Ellison’s media empire continues to expand rapidly. Paramount was acquired by Skydance Media only last year with significant financial backing from Larry Ellison.

The enlarged entity will combine:

  • Paramount’s studio and broadcast assets
  • Warner Bros.’ film and TV catalog
  • Premium cable brands such as HBO
  • Major news operations including CNN and CBS

The deal also raises political and editorial questions. Larry Ellison is a known donor and supporter of President Donald Trump, and Paramount’s ownership of CBS has previously drawn scrutiny over editorial direction.

Ellison has already warned of potential cost-cutting measures and workforce reductions following the merger.

A Transformational Media Deal

The bidding war underscores intensifying consolidation in media and streaming.

Netflix had originally framed its proposal as a clearer path to regulatory approval. However, Warner Bros. Discovery ultimately deemed Paramount Skydance’s higher valuation a “superior proposal.”

With studios, streaming platforms, and legacy television networks now under one roof, the newly expanded Paramount will emerge as one of the most powerful vertically integrated media companies in the United States.

Summary

Paramount Skydance has secured Warner Bros. Discovery in a deal valued at roughly $111 billion after Netflix declined to raise its $82.7 billion bid. Backed by Larry Ellison and major debt financing, Paramount will acquire WBD’s studios, HBO, streaming services, and cable networks while assuming $33 billion in debt. The merger marks one of the largest media consolidations in recent years.