Hollywood's Biggest Deal Just Flipped: How Paramount and the Ellisons Beat Netflix for Warner Bros

It started in December. It ended on a Thursday afternoon in February. And when the dust settled, one of the most dramatic bidding wars in Hollywood history had produced a winner nobody expected just a few months ago. Netflix Inc. dropped out of the fight to buy Warner Bros. Discovery Inc., clearing the way for rival bidder Paramount Skydance Corp. to clinch its $111 billion deal for the historic Hollywood studio. Imaging Resource David Ellison — son of Oracle billionaire Larry Ellison — is now on the cusp of owning one of the most valuable content empires ever assembled. How We Got Here The story begins in September 2025, when David Ellison, the chief executive of the recently merged Paramount Skydance, held a board meeting to discuss the acquisition of Warner Bros. Discovery so the new company could better compete against Amazon, Disney, and Netflix. GSMArena Warner Bros. Discovery, struggling under the weight of its own failed merger and mounting debt, was already quietly exploring its options. Then Netflix made the first big move — announcing in December 2025 its intent to acquire WBD's studios, streaming service, and HBO for nearly $83 billion. Paramount refused to stand down. Three days later, Paramount Skydance submitted a rival all-cash takeover bid to acquire the entirety of WBD for $108.4 billion at $30 a share, backed by the Ellison Family, Redbird Capital, and the sovereign wealth funds of Qatar, Saudi Arabia, and the UAE, along with $54 billion in debt financing from major banks. GSMArena What followed was months of escalating bids, hostile maneuvers, and regulatory pressure that kept Hollywood on the edge of its seat. The Decisive Moment On February 25, 2026, Paramount increased its offer to $110.9 billion at $31 per share. The WBD board determined that the new offer from Paramount was superior on February 26, 2026, prompting Netflix to withdraw from the bidding war. GSMArena Under the terms of the original Netflix agreement, WBD gave Netflix four business days to counter. Netflix didn't blink — it walked. Netflix co-CEOs Ted Sarandos and Greg Peters said the deal was always a "nice to have" at the right price, not a "must have" at any price, and declined to match Paramount Skydance's latest offer. Samsung The statement was disciplined, measured — and a quiet acknowledgment that the price had simply gone too high to make financial sense for the streaming giant. What Netflix Gets Out of Walking Away Losing a bidding war rarely looks good. But Netflix's exit comes with a significant silver lining. Netflix will be on the receiving end of a $2.8 billion termination fee, which Paramount has agreed to pay as part of its takeover of WBD. Android Central Netflix shares increased by 10% in after-hours trading following the decision FilmoGaz — the market effectively rewarding the company for its discipline. Netflix's co-CEOs said the company will invest approximately $20 billion in quality films and series in 2026 and will resume its share repurchase program. Samsung Walking away with $2.8 billion and a surging stock price is a very different kind of win. What Paramount Gets — And What It Owes The scale of what Paramount Skydance is acquiring is staggering. The combined entity will own Warner Bros. Pictures, HBO, Max, CNN, TBS, TNT, Discovery, HGTV, DC Comics properties including Batman and Superman, the Harry Potter franchise, and one of the deepest content libraries in entertainment history. Paramount will take on the approximately $33 billion in debt held by Warner Bros. Discovery, with the deal financed by a $57.5 billion debt commitment from Bank of America Merrill Lynch, Citi, and Apollo Global Management. Samsung Larry Ellison, whose net worth is $201 billion, has agreed to supply the additional equity to fulfill Paramount's bid. Samsung The Political Dimension This deal cannot be discussed without acknowledging its political undertones. The Netflix deal was facing increased regulatory scrutiny from a group of Trump-aligned attorneys general, while a Paramount Skydance-Warner Bros. Discovery merger will likely have an easier path to approval, thanks to the Ellison family's close ties to the Trump administration. PhoneArena Larry Ellison is a known Trump supporter and donor. Paramount's ownership of CBS has already attracted controversy, with reporting critical of the administration reportedly shelved under Ellison's watch. The question of what happens to CNN — one of the most politically charged news networks in the world — under Ellison ownership is one the entire media industry is now asking. What Happens Next The deal is not yet final. A Warner Bros. Discovery shareholder vote is scheduled for March 20, and WBD and Paramount Skydance will need to agree to and release specific detailed deal terms. The deal will also need approval from government regulators. Samsung Reactions to the new Paramount-WBD deal have been unfavorable, with many in the media industry questioning whether the Ellison family's political interests would interfere with WBD's various properties, particularly CNN, and speculating that the deal would lead to a large number of cost cuts and layoffs. GSMArena Hollywood just changed hands. The only question now is what David Ellison does with it.