Paramount set for $111bn Warner Bros takeover after Netflix drops bid

Paramount Global is poised to take over Warner Bros. Discovery in a deal worth about $111bn (£82.2bn) after Netflix withdrew from the bidding war for the Hollywood studio.

Warner Bros said on Thursday that Paramount's improved offer was “superior” and confirmed that Netflix had declined to raise its bid further.

Netflix executives said the streaming giant stepped back because the revised price no longer made financial sense. In a statement, co-chief executives Ted Sarandos and Greg Peters said the company had remained disciplined throughout negotiations. “This transaction was always a 'nice to have' at the right price, not a 'must have' at any price,” they noted, adding that the proposed structure had offered a clear path to regulatory approval.

The takeover, if approved, would hand Paramount control of Warner Bros' iconic film studio and television assets, including CNN and the HBO Max streaming platform. Paramount's sweetened bid of $31 per share, up from $30, includes financial guarantees such as a $7bn payment if the deal collapses and coverage of a $2.8bn break-up fee previously agreed with Netflix.

However, the deal still faces regulatory scrutiny. California Attorney General Rob Bonta said the merger “is not a done deal” and confirmed that the state's Department of Justice has an open investigation. Approval would also be required from the US Department of Justice and European regulators, given the scale of the combined media assets.

Paramount, backed by tech billionaire Larry Ellison and led by his son David Ellison, said the proposal offers shareholders “superior value, certainty and speed to closing”. The high-stakes battle has raised broader concerns in Hollywood about political influence, media consolidation and the future of major news brands such as CNN, as the industry braces for potential restructuring and job cuts should the merger proceed.