In what could be described as a shocking reversal of expectations, Netflix has dropped out of the bidding to acquire Warner Bros. This is not what was expected by industry insiders, Netflix themselves, or practically anyone for that matter. Just to show how much Netflix was counting on this, they sent out a mass email to subscribers on December 6th 2025. It stated they were acquiring Warner Bros. and hyping up the addition of WB intellectual properties to their catalog. So, what happened?
How Paramount Skydance Outbid Netflix
The world of mergers and acquisitions is a complicated one. When Warner Bros. Discovery put itself up for sale, the shareholders had the right to hear counterbids after Netflix made their move. Paramount Skydance did just that. The shareholders rejected that counter offer to side with Netflix, but Paramount Skydance just kept raising the offer until things unfolded earlier today. Ultimately, the Paramount offer totalled to $31 per share or effectively putting it at around $111 billion compared to the $83 billion being offered from Netflix.
This looks like a conclusive end to the bidding element of this sale. Netflix had up to four days to respond with a counter-office but instead, they took only two hours to say, “pass.” This clears the way for things to continue with the regulatory review that needs to be done with government agencies. Sadly, it seems like there’s going to be a good chance that this goes forward for all the wrong reasons.
Controversy and Political Implications of the Deal
Paramount Skydance is a tainted company to begin with. When Paramount was being acquired by Skydance, the former started kow-towing heavily to Donald Trump because they knew that his cronies at the FCC would have to approve the purchase. This is allegedly why the Paramount owned CBS network, cancelled Stephen Colbert‘s “The Late Show.” It’s also similarly why the network settled a lawsuit that Trump filed against “60 Minutes” that was EASILY winnable by CBS if they had followed it through.
It doesn’t help either that the leaders of Skydance, David and Larry Ellison are close with Trump. Regardless of what your political affiliation is, you should not want media companies paling around with government officials. It’s extremely dangerous, as evidenced by how CBS is changing its news division to be Trump-friendly. Now, Skydance is going to be able to exert that same control, and exhibit the same sway, over Warner Bros. Discovery. Nothing good can come of this.
Why This Merger Could Reshape the Entertainment Industry
Mergers and acquisitions between major companies are rarely good for the consumer in the first place. This is especially awful for Hollywood, as the fewer companies that exist, the fewer options writers, producers, and directors have to get their work out there. If you sent your script to Paramount and they denied it, well at least you still have other options like Warner Bros. Now that option is gone thanks to being under the same corporate umbrella. Netflix acquiring WBD wouldn’t have been any better in that sense, but the political implications could’ve been different.
This is probably the worst case scenario that could’ve happened. There’s a chance that this could be blocked during the regulatory review phase. But if Trump wants the Ellison’s to have more control over the media, his supporters will see it through. Nothing good can come of this. Nothing.
