Channels with Peter Kafka Netflix Walks, Paramount Wins, and the Ellisons Take Hollywood
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Feb 27, 2026 Alex Sherman, senior CNBC media reporter, breaks down the Netflix-Paramount-WBD bidding drama. He recounts why Netflix walked away, market reactions, and the regulatory and political hurdles at play. He explores what a Paramount/WBD tie-up could mean for jobs, news brands like CNN and CBS, and the Ellisons’ plans for studios and debt-fueled control.
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Why Netflix Chose To Walk Away
- Netflix walked away because the revised Paramount bid and regulatory/political risk made a long fight undesirable.
- Alex Sherman says Netflix weighed price, potential bidding escalation, and a difficult regulatory slog when deciding to stop.
A One Dollar Increase Can End A Bid
- Paramount's $1 per share bump signaled a potential bidding war and provided little room for Netflix to justify a higher counteroffer.
- Sherman notes Netflix feared an escalating back-and-forth and preferred to avoid that runway.
Netflix May Have Bid To Prevent A Cheap Sale
- Netflix may have bid partly to prevent a cheap sale to a rival and to force up the price even if it didn't intend to win.
- Sherman says inside conversations showed Netflix wanted to make sure the asset didn’t go cheaply to a competitor.