Logos of Paramount and Warner Bros. Discovery displayed on a wall, representing major entertainment brands in film and television.

Logos of Paramount and Warner Bros. Discovery displayed on a wall, representing major entertainment brands in film and television.
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Last-minute offer by the Ellison family deemed superior.

Paramount Skydance finally won the bidding war for Warner Bros. Discovery after Netflix pulled out of negotiations, saying it wouldn’t match the 11-hour David Ellison offer for the iconic Hollywood company.

The Wall Street Journal reported:

“Netflix pulled the plug on its deal soon after the Warner board of directors said it determined Paramount’s $31-per-share offer for the entire company was superior to Netflix’s bid for Warner’s movie and television studios and HBO Max streaming service. Paramount is now poised to take control of the entertainment company, home to properties and brands including HBO, Superman and Harry Potter.

‘We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match’, Netflix co-CEOs Ted Sarandos and Greg Peters said in a statement. ‘This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price’, the pair said.”

Once the acquisition is approved by regulators, Paramount will own Warner Bros, HBO and many popular cable networks such as CNN, TNT, TBS and Food Network.

The Telegraph reported:

“It marks a stunning victory for billionaire Larry Ellison and his son David, who runs Paramount. The Ellisons, close allies of Donald Trump, have been building a media empire in recent years and had seen acquiring Warner Bros as a key part of their plans.

Paramount has been seeking to derail the Netflix bid since the start of the year, making unsolicited counter offers and stressing the regulatory risks involved in the current deal.”

“David Ellison, chairman and chief executive of Paramount, said on Thursday night: ‘We are pleased WBD’s Board has unanimously affirmed the superior value of our offer, which delivers to WBD shareholders superior value, certainty and speed to closing.’

Paramount said the Ellison Trust would provide $45.7bn of equity towards the deal, backstopped by Mr. Ellison’s tech billionaire father Larry. Bank of America Merrill Lynch, Citi and private equity giant Apollo have agreed to provide $57.5bn of debt.”

UPDATE: Warner Bros reportedly signs $110 billion deal with Paramount, according to a Reuters report:

“Warner Bros Discovery has agreed to be acquired by Paramount Skydance in a $110 billion deal signed Friday morning, according to an audio clip of a global townhall by the company, which was reviewed by Reuters.

‘Netflix had the legal right to match the PSKY offer. As you all know, they ultimately decided not to do that. That then resulted in a signed agreement with PSKY as of this morning. So that’s where everything stands’, Bruce Campbell, Warner Bros’ chief revenue and strategy officer, said in the townhall.”

Read more:

Paramount Acquires ‘The Free Press’ for $150 Million, TFP Co-Founder Bari Weiss Named Editor-in-Chief of CBS News

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