Netflix has announced it will not raise its takeover offer for Warner Bros. Discovery, effectively ceding the media giant to a rival bid from Paramount Skydance after deciding the deal was no longer financially attractive.
The streaming giant’s co-CEOs, Ted Sarandos and Greg Peters, said on Thursday they were “declining to match” Paramount Skydance’s latest offer after Warner Bros. Discovery’s board declared it a “Superior Proposal” under the terms of its existing merger. Ellison is the father of Paramount Skydance CEO David Ellison, a Hollywood producer, and largely financed his son’s takeover of Paramount and his subsequent bid for Warner Bros. Discovery.
Larry Ellison is also a longtime ally of President Trump, and both Paramount and Netflix have sought to curry favour with the White House. A victory by Paramount would see CNN, often the target of Trump’s threats and criticism, pass to Ellison family control, amid criticism that their takeover of Paramount-owned CBS brought personnel changes more to the White House’s liking.