Paramount nears $111bn Warner Bros. Discovery takeover

A $111bn mega-merger is reshaping Hollywood's power map, and Netflix tapping out just handed Paramount Global the keys to Warner Bros. Discovery.

Netflix exits the Warner Bros. bidding war

• Netflix pulled back after the revised price stopped making financial sense to its executives.
• Co-CEOs Ted Sarandos and Greg Peters framed it as a "nice to have" deal, not a must-win situation.
• Warner Bros. confirmed Netflix declined to push its offer any higher.
• Staying disciplined through the whole negotiation process was how the streaming giant explained its exit.

Paramount's $111bn sweetened offer

• Paramount Global's upgraded bid landed at $31 per share, bumped up from $30.
• A $7bn payout kicks in if the deal falls apart before closing.
• Paramount also agreed to cover a $2.8bn break-up fee that had been locked in with Netflix.
• Shareholders were pitched the proposal as delivering superior value with a faster path to closing.

What Paramount gets if the deal clears

• Warner Bros.' film studio, television assets, CNN, and HBO Max all come bundled in the takeover.
• Tech billionaire Larry Ellison and his son David Ellison are the money and leadership behind Paramount.
• Warner Bros. has already stamped Paramount's offer as "superior."
• Hollywood is bracing for restructuring and job cuts if the combined entity gets the green light.

Regulatory hurdles still blocking the finish line

• California Attorney General Rob Bonta flat-out said this merger is not a done deal.
• California's Department of Justice has an active investigation running on the proposed tie-up.
• Sign-off is still needed from both the US Department of Justice and European regulators.
• Political influence and media consolidation concerns are swirling loudly around CNN's future.