Netflix backs out of bid for Warner Bros. Discovery, giving studios, HBO, and CNN to Ellison-owned Paramount | TechCrunch

"Warner Bros. Discovery announced that Paramount Skydance's newest offer of $31 a share was a 'superior proposal,' giving Netflix four business days to counter. Netflix then said it would not raise its $82.7 billion all-cash bid for the legacy studio, and would walk away from the deal."

"The new deal will see Paramount, which was bought just last year by Ellison's Skydance Media with heavy financial backing from his father, acquiring the entirety of Warner Bros. Discovery, including its studios, HBO, its streaming service, its games and entertainment divisions, and linear television networks like CNN, TBS, TNT, Discovery, and HGTV."

"Ellison, whose Paramount already owns major studios, entertainment, and news businesses, has warned of significant job cuts. His ownership of news network CBS has also attracted controversy and has largely been seen as a sympathetic turn toward the Trump administration."

Paramount Skydance has secured Warner Bros. Discovery in a competitive acquisition battle. After Paramount presented a $31-per-share offer deemed superior by the company, Netflix declined to counter its previous $82.7 billion all-cash bid and withdrew from negotiations. Paramount will pay Warner Bros. Discovery's $2.8 billion termination fee to Netflix. The acquisition, financed by Oracle executive chair Larry Ellison and his son David Ellison, includes all of Warner Bros. Discovery's assets: studios, HBO, streaming services, gaming divisions, and television networks including CNN, TBS, TNT, Discovery, and HGTV. David Ellison has indicated significant job cuts will follow the merger.

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