Netflix is ​​returning to Warner Bros. Discovery, offering studios, HBO, and CNN to Ellison-owned Paramount

In the midst of a multi-hundred-billion-dollar franchise, the battle to pay Warner Bros. Discovery is over. David Ellison-owned Paramount will acquire Warner Bros. Discovery.

On Thursday, Warner Bros. Discovery he announced that Paramount Skydance’s latest $31 episode was a “superb idea,” giving Netflix four business days to counter. Netflix then said it would not raise $82.7 billion all the money of the heritage studio, and will leave the contract.

“The transaction we discussed would have created shareholder value and was a clear path to approval,” Netflix CEOs Ted Sarandos and Greg Peters said in a statement Thursday. “However, we have been consistently penalized, and at the price required to match Paramount Skydance’s recent offer, this deal is no longer financially attractive, so we decline to match Paramount Skydance.”

According to their original performance, Warner Bros. Discovery will have to pay $2.8 billion to liquidate Netflix to end the existing contract. Paramount’s new offer — backed by the world’s sixth-richest man, Oracle’s chief executive, and David Ellison’s father, Larry Ellison — includes paying that fee.

The new deal will see Paramount, which was bought last year by Ellison’s Skydance Media with a big financial backing from his father, acquire Warner Bros. All of Discovery, including its studios, HBO, its streaming service, its sports and entertainment divisions, and television networks such as CNN, TBS, TNT, Discovery, and HGTV.

Ellison, whose Paramount already owns major studios, entertainment, and media businesses, has warned of job cuts. The network owner CBS has also drawn controversy and has appeared sympathetic to the Trump administration, expressing opposition to the administration. stored or face further scrutiny by Ellison and CBS executive editor Bari Weiss. Larry Ellison is a top aide and supporter of President Trump.

Netflix announced its intention find WBD in December, paid about $ 83 billion for its studios and broadcasting services alone. Despite Paramount’s appeal for more money, Warner Bros. Discovery also proved to the owners that they believed that Netflix was better than Paramount’s, which gave $ 108 billion to the whole company including its television shows. Paramount’s new offer, at $31 a share, makes WBD worth about $111 billion.

Paramount will take on about $33 billion in debt owed by Warner Bros. Discovery, according to the agreement. Larry Ellison, whose net worth is $201 billion, according to Bloomberghas agreed to provide additional funding to fulfill Paramount’s marketing efforts. Paramount’s market value is about $12 billion.

The deal is also backed by $57.5 billion commitment of debt from Bank of America Merrill Lynch, Citi, and Apollo Global Management.

Shares of Netflix jumped as much as 10% in early trading in New York. Shares in Paramount rose 4.5%.