New York: Paramount Skydance is poised to take control of Warner Bros. Discovery after Netflix said it would not raise its takeover offer, ending one of the biggest media bidding wars in recent years.

Netflix said it was “declining to match” Paramount’s latest bid after the Warner board deemed it a “Superior Proposal” under their merger agreement.

“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” Netflix said in a statement. “However, 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 the Paramount Skydance bid.”

The company added it “would have been strong stewards of Warner Bros.' iconic brands” and that its proposal “would have strengthened the entertainment industry and preserved and created more production jobs in the US.” But, it said, the acquisition was “always a 'nice to have' at the right price, not a 'must have' at any price.”

With no counteroffer, Warner Bros. Discovery can now terminate its deal with Netflix and proceed toward a shareholder vote on the Paramount transaction, effectively rendering a planned March 20 vote on the Netflix agreement moot.

White House Spotlight

Paramount’s sweetened offer, backed by additional funding commitments from Larry Ellison, drew political attention, with Donald Trump insisting he had a say in the outcome. Ellison, a White House ally, is the father of Paramount CEO David Ellison and has largely financed his son’s takeover strategy.

Republican lawmakers also criticised Netflix during the process, accusing the platform of promoting pro-trans content, an allegation co-CEO Ted Sarandos denied. Sarandos was seen entering the White House for talks with officials shortly before Netflix withdrew, though not meeting the president.

Financing and Regulatory Hurdles

Paramount’s revised bid offers $31 per share in cash, valuing Warner Bros. Discovery at about $108 billion. It includes a $7 billion regulatory termination fee and a commitment to cover the $2.8 billion breakup fee Warner would owe Netflix.

The deal is also backed by sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi, a factor likely to attract additional regulatory scrutiny.

If completed, the merger would combine the streaming platforms HBO Max and Paramount+, unite two of Hollywood’s biggest film studios, and place CNN and CBS News under the same ownership.