Warner Bros. Discovery has the billion-dollar takeover approved by Paramount Skydance. A joint agreement was signed by both sides, the companies announced. On Thursday, Netflix announced that it would be withdrawing from the bidding war for Warner Bros., clearing the way for Paramount to take over the Hollywood veteran.
With the takeover by Paramount Skydance, the news channel CNN also comes under the control of the family of tech billionaire Larry Ellison, who is known as a Trump supporter. They will “honor the legacy of two legendary companies,” said Paramount boss David Ellisonthe son of Larry Ellison. The CEO of Warner Bros. Discovery, David Zaslav, was also “very satisfied with the result.”
David Ellison wants to gain influence in Hollywood with the takeover of Warner Bros. Discovery. Paramount has so far been considered a smaller player in the industry. Warner includes, among other things, the DC superhero universe with Superman and Batman, film series such as Harry Potter as well as a strong streaming business via the pay channel HBO.
Netflix’s offer was $83 billion
Most recently, Paramount, which was acquired by the Ellisons last year, had his Offer increased from $30 to $31 per share. According to Warner’s board of directors, this exceeds Netflix’s previously accepted offer. The streaming giant would then have had four days to counter Paramount with a higher offer. However, Netflix announced that further outbidding was no longer financially attractive. Paramount had previously agreed to cover the $2.8 billion penalty that Warner would have to pay in the event of a deal with Netflix.
The Offer from Netflix was almost 83 billion dollars and only included the studio and streaming business of Warner Bros. The TV channels were to be spun off into a new company. After the increase, Paramount is offering around $111 billion for the entire group, including the television division. Large parts of the purchase price are personally guaranteed by Larry Ellison. The 81-year-old tech mogul’s fortune is currently estimated by Bloomberg at around $200 billion.
Concern about influence at CNN
Rob Bonta, California Attorney Generalbut warned that Paramount’s takeover of Warner was not yet secured. The deal still has to be examined by competition authorities. According to media reports, the Ellisons are counting on a positive decision due to their closeness to Trump.
The news channel CNN often reports critically about US President Donald Trump. Trump himself emphasized in December that any deal would have to ensure that CNN changed hands. Critics fear that CNN could lose its editorial independence under Paramount. This concern is not unfounded: The newsroom of the Paramount broadcaster CBS recently adopted a friendlier tone towards the Trump administration after the Ellisons took over.