End of Hollywood Drama: Warner Bros to be Acquired by Paramount, Not Netflix

Photo: Mario Tama/Getty Images

American media giant Paramount Skydance announced the acquisition of Warner Bros Discovery for $111 billion. It outmaneuvered streaming service Netflix in a fierce six-month battle for the right to buy one of Hollywood's five oldest film studios after Netflix withdrew its bid, writes the BBC.

Paramount will gain control over the film studio, its movies, and media networks. An acquisition of this magnitude could significantly alter the film and media landscape.

The combined company will include CNN, CBS News, HBO, and Nickelodeon, as well as well-known franchises such as "Harry Potter," "Game of Thrones," "Mission: Impossible," etc.

The deal was unanimously approved by the boards of directors of both companies and is expected to close in the third quarter of 2026, AFP writes.

The merger, which will create one of the world's largest film studios, must be approved by regulators, including those in California.

As State Attorney General Rob Bonta reminded, the potential merger "is not yet a settled matter."

"The California Department of Justice is conducting an open investigation, and we intend to study it thoroughly," he stated. Paramount will also require approval from the U.S. Department of Justice, as well as European regulatory bodies.

Warner Bros., which has been negotiating a sale since 2025, stated yesterday that Paramount's latest offer "outperformed" Netflix's bid, which, in turn, refused to raise its price.

Netflix executives explained their decision not to try to outbid Paramount's competitors by stating that "a deal at such a price would no longer be financially attractive."

Such an outcome was not predetermined. Last December, Warner Bros. had already agreed to Netflix's offer to acquire a portion of its assets in a deal valued, including debt, at approximately $82 billion.

Paramount then made a competing offer, which was rejected by Warner Bros. The situation changed when, earlier this week, the company offered an even higher price, plus one dollar per share.

What Awaits CNN

The deal between Paramount and Warner Bros could have serious implications for one of the largest news brands in the USA — the CNN television channel, which is part of Warner Bros.

Paramount is headed by David Ellison, son of billionaire Oracle founder Larry Ellison, a long-time supporter and friend of US President Donald Trump and a major Republican Party donor.

CNN traditionally supports Democrats more, but its relationship with Trump is openly confrontational. Becoming president in 2017, he called CNN news "fake news" and thereafter frequently criticized the news channel for its coverage of his policies. In December 2025, he stated that, in his opinion, CNN should be sold regardless of the outcome of the deal with Warner Bros. Trump called CNN's management "corrupt or incompetent" and said they could not be trusted to run the channel.

When it became known that an agreement with Paramount had effectively been reached, CNN head Mark Thompson sent an email to employees, urging colleagues not to "jump to conclusions about the future until we know more," American media reported. The BBC contacted CNN for comment.

“CNN viewers and readers may be asking the same question as CNN employees: what will the Paramount purchase mean? There are few answers to that question yet,” acknowledges the TV channel. “Paramount management is discussing in private conversations the possibility of combining the CBS News division with CNN. They also highly value the work of CNN's news service and its global reach. But CNN employees and viewers are seriously concerned about whether Paramount head David Ellison will maintain the editorial independence of the channel amid serious political turbulence.”

So far, Paramount representatives have communicated nothing to CNN, either officially or unofficially, about their plans, CNN notes. After Paramount acquired control over CNN's competitor — CBS News — Ellison changed its management, CNN reminds.

In 2025, Trump sued CBS News for allegedly manipulating an interview with his presidential election opponent Kamala Harris, which, in Trump's opinion, was intended to sway voters to vote for her. The case was settled after Paramount agreed to pay $16 million to Trump, although the broadcasting company did not admit guilt.

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