Netflix announced Thursday that it would not continue its effort to acquire Warner Bros. Discovery, paving the way for Paramount Skydance—a company controlled by the son of billionaire Trump donor Larry Ellison—to take over the media giant after a lengthy bidding war.
The news came after Netflix CEO Ted Sarandos visited the White House and met with members of President Donald Trump’s staff, raising suspicions about the role the administration may have played in pushing the streaming giant to drop its bid for Warner Bros. and cede the fight to David Ellison’s Paramount. Along with other major media properties, Warner Bros. owns CNN, a frequent target of Trump’s ire.
“What did Trump officials tell the Netflix CEO today at the White House?” asked Sen. Elizabeth Warren (D-Mass.), calling the potential Paramount-Warner Bros. merger “an antitrust disaster threatening higher prices and fewer choices for American families.”
“A handful of Trump-aligned billionaires are trying to seize control of what you watch and charge you whatever price they want,” Warren added. “With the cloud of corruption looming over Trump’s Department of Justice, it’ll be up to the American people to speak up and state attorneys general to enforce the law.”
In a statement that appears to have stunned Hollywood, Netflix announced Thursday that it would not raise its offer for Warner Bros. after that company’s board deemed Paramount’s latest offer of $111 billion “superior.” Netflix said it determined the pursuit of Warner Bros. was “no longer financially attractive.”
“Ellison will readily throw the First Amendment, CNN’s reporters, and HBO’s filmmakers under the bus if they stand in the way of expanding his corporate empire and fattening his pockets.”
Ellison, for his part, said he was “pleased” that the Warner Bros. board “affirmed the superior value of our offer, which delivers to WBD shareholders superior value, certainty, and speed to closing.”
The proposed Paramount-Warner Bros. merger still must receive regulatory approval in the US and Europe. Critics have voiced concerns about the legitimacy of a US Justice Department review given the recent ouster of antitrust chief Gail Slater.
State attorneys general could also intervene. Rob Bonta, the attorney general of California, emphasized in a statement that “Paramount/Warner Bros is not a done deal.”
“These two Hollywood titans have not cleared regulatory scrutiny—the California Department of Justice has an open investigation, and we intend to be vigorous in our review,” said Bonta.
On top of antitrust concerns, critics of the potential Paramount-Warner Bros. merger warned it would be a disaster for journalism and free expression. David Ellison acquired CBS News last year through the Paramount-Skydance merger approved by the Trump administration, and he is now poised to take over CNN, HBO, and other major platforms.
“Ellison has already shown his cards,” said Seth Stern, chief of advocacy at the Freedom of the Press Foundation. “When the Trump administration unconstitutionally demanded editorial concessions from Ellison’s Skydance in exchange for government approval of its takeover of Paramount and CBS News, he obliged, even appointing a Trump loyalist as a so-called ‘bias ombudsman.’ CBS has since repeatedly censored journalists or altered its coverage to please Trump and his allies.”
“There is no reason to believe that this proven capitulator will behave any differently this time around—in fact, he’s already reportedly promised Trump ‘sweeping changes’ at CNN, including firing people Trump dislikes,” Stern said. “Ellison will readily throw the First Amendment, CNN’s reporters, and HBO’s filmmakers under the bus if they stand in the way of expanding his corporate empire and fattening his pockets.”
“Lawmakers, state attorneys general, and anyone else in a position to intervene should make clear that they will not stand by as the Trump administration abuses its power to unconstitutionally extract content-based concessions from news companies,” he added.
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