**Netflix’s $82.7 Billion Proposal to Buy Warner Bros Discovery Falls Through: A New Bid from Paramount Skydance Emerges**
Netflix’s ambitious proposal to acquire parts of Warner Bros Discovery for $82.7 billion, which included renowned game developers such as Avalanche, TT Games, NetherRealm, and Rocksteady, has encountered a significant setback. On February 24, rival company Paramount Skydance proposed an even higher bid of approximately $111 billion, offering $31 per share for the entirety of Warner Bros Discovery alongside its linear cable channels.
Despite Netflix’s initial interest, its decision not to raise the bid comes after Warner Bros Discovery’s board previously rejected an all-cash offer of $30 per share from Paramount Skydance. Following this rejection, Paramount returned with a more enticing offer earlier this month, further complicating Netflix’s position.
In the face of this intense competition, Netflix co-CEO Ted Sarandos was spotted lobbying in Washington, D.C., likely seeking support from the Trump administration regarding the acquisition. The potential acquisition’s political landscape became more intricate given the affiliations of Paramount Skydance CEO David Ellison and his father Larry Ellison, who is noted for financing the acquisition through personal wealth and is also a known supporter of Donald Trump. This political backing has been leveraged by Paramount as a means of easing regulatory concerns.
As the proposal shifted, opposition from the Democrat side has materialized, perceiving the Paramount-Warner merger as problematic. Senator Cory Booker, a ranking member of the Senate Judiciary antitrust subcommittee, has invited David Ellison to testify regarding the acquisition, reflecting skepticism towards the merger’s implications.
In a notable fallout from this situation, Warner Bros Discovery will incur a $2.8 billion termination fee to Netflix if the planned acquisition fails. However, Paramount has committed to covering this expense, alongside offering a $7 billion breakup fee, should their own acquisition face regulatory hurdles.
In a statement, Netflix’s executives expressed their belief that they could have been strong custodians of Warner Bros’ iconic brands, emphasizing that their offer was framed as a valuable opportunity rather than an urgency. Their position reiterates that the integration of Warner Bros Discovery under Netflix would have potentially strengthened the entertainment landscape and helped create jobs within the U.S.
As this acquisition scenario unfolds, the immediate ramifications are expected to resonate within TV and film studios affiliated with Warner and Paramount. Given the substantial overlap between these legacy media entities, workforce reductions may be on the horizon. The future of Warner’s already diminished gaming division remains uncertain as the industry watches closely to see how these developments will affect the broader media ecosystem.
