After months of competition, Paramount has officially won the fight to buy Warner Bros after Netflix decided to stop bidding. Netflix announced on Thursday that it would not raise its offer because Warner Bros. Discovery’s board said Paramount made a better deal. Netflix said the purchase was “no longer financially attractive,” meaning it didn’t think it was worth spending more money.
If the deal gets approved, Paramount CEO David Ellison will lead a very large media company that includes CNN, HBO, movie studios, and many TV channels.
Paramount added a $7 billion “regulatory termination fee.” This means Warner Bros Discovery would receive $7 billion if the government blocks the merger. That extra promise helped convince Warner Bros Discovery’s board to choose Paramount’s offer.
Warner Bros Discovery CEO David Zaslav said the bidding war caused eight price increases and raised the company’s stock price by more than 60% compared to the first offer last September. Overall, Warner Bros Discovery’s stock price more than doubled during the competition.
Meanwhile, Netflix’s stock went up 9% after it stepped away from the deal. This suggests some investors were happy that Netflix decided not to spend more money.
There was also political attention around the deal. On the same day Netflix backed out, co-CEO Ted Sarandos visited the White House. He did not meet directly with Donald Trump, but the timing led to questions.
Senator Elizabeth Warren wondered if the meeting influenced Netflix’s decision and questioned whether the Trump administration preferred Paramount’s offer.
President Trump had previously shown support for Paramount. He publicly criticized Netflix board member Susan Rice and warned the company to remove her or “pay the consequences.” He had also said earlier that it was “imperative that CNN be sold.”
Under Netflix’s original plan, CNN would have been separated from the rest of the company along with other cable channels. However, Paramount has said it plans to buy all of Warner Bros Discovery , including CNN.
Earlier this month, David Ellison met privately with Trump at the White House. After that meeting, Trump said he was “not involved” in the merger, even though he had previously suggested he might be.
Even though Paramount is now the clear winner, the deal still needs approval from government regulators. The review could take several months, and some experts believe the Justice Department might challenge the merger.
For now, the bidding war is over. This story shows how business, politics, and media are often connected. A company buying another company doesn’t just affect money and stocks; it can also affect major news networks and what millions of people watch and read every day.
