Warner Bros. resisted, but Netflix drops out of billion-dollar deal, clearing way for Paramount
Netflix has withdrawn from the acquisition of Warner Bros. Discovery, which also includes Eurosport and HBO Max. The parties had agreed on a billion-dollar deal by the end of 2025, but competitor Paramount publicly made a significantly higher bid. Warner Bros. Discovery was firmly opposed to Paramount's astronomical takeover bid, but that path now seems clear.
The NOS reports that Netflix is not raising its offer and is pulling out of the takeover. According to Warner Bros. Discovery’s board, Paramount made a "superior proposal." The film studio is prepared to pay $111 billion to acquire the entire Warner Bros. Discovery. Additionally, the company is willing to pay a $7 billion fee if the deal falls through due to objections from Warner Bros. Discovery’s regulators.
If the massive deal goes through, Paramount will also pay the $2.8 billion compensation that Warner Bros. Discovery owes Netflix for breaking their agreement. Both parties had previously reached an accord in which streaming service Netflix would acquire several key parts of Warner Bros.
Warner Bros. Discovery was against Paramount.
The takeover of Warner Bros., Hollywood studios, and streaming service HBO Max by Netflix seemed sealed by the end of 2025 when the streaming service made a binding bid of 83 billion euros. Film studio Paramount later publicly offered $108 billion and would also acquire Warner Bros.' TV channels, including CNN and Discovery Channel.
Paramount sought to hijack the deal between Netflix and Warner Bros. Discovery with money from other investors. The investment fund Affinity Partners, led by Donald Trump’s son-in-law Jared Kushner, was involved in the deal, and billionaire David Ellison was to guarantee $41 billion. In December, the news agency Bloomberg reported that Affinity Partners withdrew from the deal, while Warner Bros. Discovery’s leadership remains skeptical about the Ellison family’s guarantee.
The board of the media company Warner Bros. Discovery is advising shareholders not to let the company fall into Paramount’s hands. The board believes that Paramount is "structurally misleading" the shareholders and recommends they opt for the Netflix acquisition. That deal is now off the table.
Consequences for cycling fans?
For cycling fans with a subscription to HBO Max, the acquisition may have effects. HBO Max falls under Warner Bros. Discovery and thus also collaborates with Eurosport TV channels, which are also part of Warner Bros. Discovery.
Besides series and films, HBO Max streams a lot of live sports, including exclusive coverage of the Giro d'Italia. Major cycling tours like the Tour de France, Vuelta a España, and various classics can also be watched there.
Film studio Paramount, in turn, owns TV channels like MTV and Nickelodeon. Furthermore, it is co-owner (with American media company Comcast) of the streaming service SkyShowtime. With franchises like Gladiator, Shrek, Titanic, and the Transformers, Mission: Impossible, and Star Trek film series, Paramount has also produced many well-known movies.
