Netflix bows out: Paramount Skydance secures Warner Bros. Discovery in $111 billion deal, eyes CNN overhaul

In a dramatic conclusion to one of Hollywood’s most intense corporate battles, Netflix has withdrawn from its bid to acquire Warner Bros. Discovery, clearing the path for Paramount Skydance to take control of the media giant in a deal valued at approximately $111 billion.

The announcement came late Thursday, February 26, when Netflix co-CEOs Ted Sarandos and Greg Peters stated that matching Paramount’s latest offer was “no longer financially attractive.”

This move positions Paramount Skydance, led by CEO David Ellison, son of Larry Ellison — a close friend of Steve Jobs for many years — to absorb WBD’s vast portfolio, including HBO, Warner Bros. Studios, and CNN.

The bidding war escalated after WBD put itself up for sale last year, drawing interest from multiple suitors.

Netflix had initially secured a deal in December 2025 for WBD’s studio and streaming assets at $27.75 per share, totaling about $83 billion, but Paramount countered with a hostile all-cash bid for the entire company.

Paramount’s revised offer of $31 per share, plus commitments like a $7 billion regulatory termination fee and coverage of Netflix’s $2.8 billion breakup fee, was deemed “superior” by WBD’s board.

Netflix declined to raise its bid, citing financial discipline, and its shares rose nearly 10% following the news.

The acquisition, still pending regulatory approval, unites two major Hollywood players and combines streaming services like Paramount+ and Max, alongside news operations from CBS and CNN.

Analysts warn of potential antitrust scrutiny, given the consolidation of media assets, but Ellison’s family ties to President Donald Trump — his father, Oracle founder Larry Ellison, is a known Trump ally — may smooth the path in Washington.

The deal also includes Ellison’s commitment to additional equity funding to ensure solvency.

Potential Shift Toward Balanced Political Coverage at CNN

A key point of intrigue is the fate of CNN, long criticized by conservatives for perceived left-leaning bias. Under Paramount’s ownership, insiders and analysts speculate that CNN could undergo changes aimed at fostering more balanced political coverage, potentially broadening its appeal and addressing its lagging ratings.

David Ellison has signaled to Trump administration officials intentions for “sweeping changes” at CNN, including possible integration with CBS News, where he recently installed editor-in-chief Bari Weiss with a mandate to move CBS back to the center in political coverage.

Weiss’s leadership at CBS has already prompted editorial shifts, such as eliminating DEI policies and settling a $16 million lawsuit with Trump over past campaign coverage.

Critics within CNN express concern that such moves could compromise journalistic independence, however proponents argue that a rightward tilt could “balance” CNN’s reporting, attracting viewers alienated by its current stance and aligning with Trump’s past calls for the network to be sold off to curb what he deems “fake news.”

Ellison’s discussions have reportedly included axing left-leaning hosts like Erin Burnett and Brianna Keilar.

If implemented, this could lead to programming that appeals to a wider ideological spectrum, potentially including more conservative voices to counterbalance liberal narratives.

From a business standpoint, a push for balance might be beneficial: CNN’s viewership has struggled amid perceptions of partisanship, and a recalibration could help compete in a polarized media landscape.

CNN’s Ratings Lag Behind Rivals

CNN’s current ratings underscore the need for change. In January 2026, the network averaged 660,000 primetime viewers, trailing Fox News (2.046 million) and even MS NOW (formerly MSNBC, 887,000).

February data shows the gap widening: Fox News averaged 2.61 million primetime viewers, 35% more than MS NOW (1.14 million) and CNN (807,000) combined. Throughout 2025, CNN hit historic lows, averaging just 105,000 demo viewers in primetime, while Fox dominated with highs like 2.652 million total viewers.

These ratings figures highlight CNN’s challenges in a market where Fox News’s conservative slant has built a loyal base, suggesting that a move toward balance could help recapture moderate audiences and boost competitiveness.

As the deal progresses, all eyes will be on how Paramount navigates CNN’s role in this new empire. While job cuts and restructurings are widely anticipated at CNN under the new ownership, the prospect of a more centrist editorial approach could provide a much-needed spark for ratings recovery—though rebuilding the network’s eroded credibility and public trust may prove to be a prolonged and challenging endeavor.

MacDailyNews Take: For now, the deal awaits shareholder approval and regulatory scrutiny — expect fireworks there, given the scale and political undertones – but ultimately, approval. In the meantime, Hollywood’s chessboard just got a lot more interesting. This merger will reshape content pipelines and influence how news reaches millions of Americans for years to come.

With regulatory approval – which, again, we expect – Paramount would acquire the entirety of Warner Bros. Discovery — including all its divisions, studios, streaming services, film/TV libraries, cable networks, and international operations. This contrasts with the original Netflix proposal, which targeted only the Streaming & Studios portion post-split.

Here’s a breakdown of the major parts, brands, and subsidiaries Paramount would control:

Key Studios and Film/TV Production

• Warner Bros. Motion Picture Group (Warner Bros. Pictures, New Line Cinema)
• Warner Bros. Television Group
• DC Studios (DC Comics universe, including films, TV, and related IP)
• Extensive libraries: Harry Potter franchise, Game of Thrones, DC Comics properties (Batman, Superman, etc.), Mortal Kombat, classic films (e.g., Citizen Kane), Barbie (2023), and vast back catalogs from Warner Bros., New Line, and Turner Entertainment.

Streaming and Premium Content

• HBO and HBO Max
• Related international HBO offerings.

Cable and Linear TV Networks (U.S. and Global)

• CNN (including CNN International, CNN en Español, CNN Business, HLN)
• TBS, TNT, TCM (Turner Classic Movies)
• truTV
• Discovery networks: Discovery Channel, Animal Planet, Science Channel, Investigation Discovery, TLC, Travel Channel, Destination America
• Lifestyle: HGTV, Food Network (including Cooking Channel), Magnolia Network, OWN (Oprah Winfrey Network)
• Kids/Animation: Cartoon Network, Adult Swim, Boomerang, Cartoonito, Discovery Family
• Other: Oprah.com/OWN affiliates

Sports and Related

• TNT Sports (U.S. rights, including NBA, NHL, etc.)
• Bleacher Report (B/R)
• Eurosport (international sports)
• Stakes in regional sports networks and MLB Network/NBA TV partnerships

Other Notable Assets

• Discovery+ streaming service (profitable in many markets)
• Gaming: Warner Bros. Games (including studios like NetherRealm, Rocksteady, Monolith)
• International free-to-air channels (Europe), digital products, and production arms (e.g., Warner Bros. International Television Production elements)
• Consumer products, licensing, publishing, and experiences tied to franchises like DC, Harry Potter, and Looney Tunes.

This massive portfolio would merge with Paramount’s existing assets including Paramount Pictures, CBS, Nickelodeon, MTV, BET, Comedy Central, Paramount+, Showtime and more creating one of the largest media conglomerates — combining Hollywood studios, premium streaming (HBO Max, Discovery+, Paramount+), news (CNN + CBS News), cable networks, and sports rights.

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