Reuters Morning Bid Paramount’s Hollywood ending
Feb 27, 2026
A surprise $31‑per‑share bid reshuffles Hollywood ownership and streaming strategies. Markets react as Netflix rebounds while regulators and politicians eye approvals. A major payments firm slashes staff in an AI reset that rattles investors. An AI company refuses to drop safeguards, risking a $200M Pentagon contract and sparking debate over defense partnerships and industry values.
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Paramount Skydance Wins Surprise Bidding War
- Paramount Skydance unexpectedly won the Warner Bros bid with an offer of $31 a share, topping Netflix's $27.75 bid.
- The surprise win follows eight prior rejected offers and shifts regulatory scrutiny toward a different acquirer path than Netflix would have taken.
Market Relief Sends Netflix Shares Higher
- Netflix shares jumped about 20% after Paramount's win because investors see relief from taking on Warner's $50 billion debt and moving away from legacy studio overheads.
- The market reaction reflected fears Netflix would abandon its growth model and increased scrutiny during the bidding period.
Deal Includes HBO and CNN Raising Political Risk
- Paramount's proposed takeover includes HBO and CNN, unlike Netflix's plan to spin off parts, raising greater political and antitrust concern.
- The deal's approval faces US and European regulatory review and a Senate Judiciary Committee hearing next week.