Netflix has withdrawn its bid to buy Warner Bros Discovery, clearing the way for Paramount Skydance’s $111bn takeover offer.

• Warner Bros said Paramount’s updated bid was “superior,” and Netflix declined to raise its offer, calling the price no longer financially attractive.

• A Paramount takeover would give it control of Warner Bros’ films and media networks, reshaping the entertainment industry.

• Warner Bros had previously agreed to sell some assets to Netflix in a deal worth about $82bn including debt.

• Paramount raised its offer by $1 per share earlier in the week to secure the deal.

• Netflix executives said the proposed acquisition was a “nice to have” but not worth pursuing at a higher price.

• California Attorney General Rob Bonta stated the merger is not yet approved and remains under investigation.

• Paramount will also need approval from the US Department of Justice and European regulators.

• A Paramount–Warner Bros deal could affect CNN, which is owned by Warner Bros, raising concerns about political influence.

• Paramount is backed by billionaire Larry Ellison and led by his son David Ellison.

• Scrutiny has been raised due to Larry Ellison’s ties to President Donald Trump, who has been critical of CNN.

• Trump previously suggested CNN should be sold during any Warner Bros deal and has attacked the network’s leadership.

• CNN head Mark Thompson told employees not to assume outcomes until more is known.

• Jared Kushner’s firm initially supported Paramount’s bid but withdrew amid scrutiny.

• Paramount’s 2025 merger with Skydance faced regulatory review and resulted in a $16m CBS News settlement related to a Trump lawsuit over a “60 Minutes” interview.

• Approval of the deal would give Paramount control of HBO Max subscribers, CNN, Food Network, and various sports assets.

• Paramount already owns major networks such as CBS, Nickelodeon, and Comedy Central.

• Critics argue both potential buyers—Netflix and Paramount—posed different risks to Hollywood, including concerns about political influence and impacts on cinema.

• The sale of Warner Bros is expected to lead to significant staff cuts amid ongoing production reductions in Hollywood.

• In its previous agreement with Netflix, Warner Bros planned to sell its film and streaming divisions, including HBO, to Netflix for about $82bn.

• Paramount’s final offer includes $31 per share to acquire the entire company, plus a $7bn payment if the deal collapses and coverage of Warner Bros’ $2.8bn breakup fee owed to Netflix.