Paramount Skydance is poised to take over Warner Bros. Discovery in a blockbuster $111bn (£82.2bn) deal after Netflix officially withdrew from the bidding war.

Warner Bros confirmed that Paramount’s revised offer of $31 per share was “superior” to Netflix’s proposal.

Netflix declined to raise its previous $82bn offer, with co-chief executives Ted Sarandos and Greg Peters stating the acquisition was “no longer financially attractive” at a higher price.

A Deal That Could Reshape Hollywood

If approved, the Paramount-Warner Bros merger would dramatically reshape the global media landscape.

Paramount would gain ownership of HBO Max, CNN, Food Network, and Warner Bros’ extensive film and television catalogue.

The deal would also expand Paramount’s existing portfolio, which includes CBS, Nickelodeon, and Comedy Central.

The acquisition is backed by tech billionaire Larry Ellison and led by his son, David Ellison, who described the offer as providing shareholders with “superior value, certainty and speed to closing.”

Regulatory Scrutiny and Political Concerns

The merger still faces intense regulatory review. California Attorney General Rob Bonta confirmed an ongoing investigation, warning the transaction is “not a done deal.”

Approval will also be required from the US Department of Justice and European regulators.

Political scrutiny has intensified due to Ellison’s ties to Donald Trump. Trump has previously criticised CNN and suggested the network should be sold.

What It Means for CNN and Hollywood Jobs

As Warner Bros’ parent company, CNN’s future ownership could shift under Paramount. CNN chief Mark Thompson has urged staff not to speculate until regulatory clarity emerges.

Industry analysts warn the merger could trigger leadership shakeups and job cuts across Hollywood, a sector already grappling with reduced production and consolidation pressures.