Netflix has dropped its massive $83 billion bid for Warner Bros. Discovery after facing fierce opposition from both shareholders and Republicans. The deal was supposed to secure HBO and several TV networks, but it seems the company realized it couldn’t get enough support from key stakeholders.
The main reason Netflix walked away is because of concerns about winning over Donald Trump’s approval in 2026, a crucial step for the merger. Despite visiting the White House, Netflix didn’t receive any assurances that Trump would back the deal. Meanwhile, investors had been signaling their disinterest in the deal by pushing down Netflix stock.
As a result, it appears that Paramount, owned by Larry and David Ellison, is now likely to win the bid. This means that WBD’s assets will be transferred to Paramount, potentially affecting various employees, including those at HBO, CNN, and CBS News.
The implications of this deal are significant, as it would give the Ellison family control over a vast media conglomerate with diverse assets, including two movie studios, major news operations, streaming services, and a broadcast network. This marks an impressive turnaround for the family, who had previously been minor players in the media industry.
Source: https://www.businessinsider.com/why-netflix-walked-wbd-paramount-trump-sarandos-ellison-2026-2