In reversal, Warner Bros. jilts Netflix for Paramount

"Netflix promised that Warner Bros. would operate as an independent studio and keep showing its movies in theaters. But the political realities, combined with Paramount's owners' relentless drive to expand their entertainment holdings, have prevailed at least for the moment."

"Whether Warner ends up with Paramount or Netflix, the deal likely would face a significant antitrust review from the U.S. Justice Department, given the combination of major entertainment assets."

"Speaking on the red carpet for the BAFTA film awards last weekend, Netflix CEO Ted Sarandos dared Paramount to stop making its case publicly and start ponying up cash. 'If you wanna try and outbid our deal just make a better deal. Just put a better deal on the table.'"

Warner Bros. Discovery's board announced that Paramount's sweetened bid to acquire the entire company is superior to Netflix's $83 billion offer for streaming services, studios, and intellectual property. Netflix has four business days to match or improve the offer. Paramount previously bid $108 billion for all of Warner, including cable channels like CNN, TBS, and Discovery, and recently increased its bid by a dollar per share. Netflix CEO Ted Sarandos met with Trump administration officials to advocate for the deal. Both potential acquisitions would likely face significant antitrust review from the U.S. Justice Department due to the combination of major entertainment assets involved.

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