TechCrunch Industry News Netflix backs out of bid for Warner Bros. Discovery, giving studios, HBO, and CNN to Ellison-owned Paramount
Feb 27, 2026
A blockbuster bidding war ends with Paramount securing Warner Bros. Discovery and taking control of studios, HBO, streaming, games, and CNN. Netflix withdraws its massive cash offer. Plaid permits employee share sales at a fresh $8B valuation, up from earlier this year. The deal raises questions about financing, breakup fees, market reaction, and media ownership concerns.
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Ellison Backed Paramount Wins WBD Bidding War
- Paramount Skydance's $31/share offer, backed by Larry Ellison, beat Netflix and included paying Netflix's $2.8B breakup fee.
- The deal covers studios, HBO, streaming, games, and networks like CNN, TBS, TNT, Discovery, and HGTV, valuing WBD at ~$111B.
Netflix Walks Away After Price Becomes Unattractive
- Netflix declined to match Paramount's bid, calling the price required to match 'no longer financially attractive.'
- Per the original terms, Warner Bros. Discovery must pay Netflix a $2.8B termination fee to end their agreement.
Ellison Financing Raises Media Ownership Concerns
- Larry Ellison will supply equity and has political ties raising controversy over news influence, given his ownership of CBS and donations to Trump.
- David Ellison's Skydance already bought Paramount last year, now leveraging father Larry's $201B net worth.