Emperor Chris Baywood Ibe, Founder & Group Chief Executive of Baywood Group, the parent company of CBI Digital Media (owners of premium streaming platform CBI Prime), reacts as Netflix bows out of deal to take over Warner Bros. Discovery...

Netflix has decided not to raise its bid for the studio and streaming assets of Warner Bros' Discovery, a move that significantly reshapes Hollywood’s deal landscape and clears the path for Paramount to emerge as the leading contender to acquire the storied entertainment giant.

The decision follows Warner Bros. Discovery’s announcement that Paramount, backed by Skydance, had submitted a superior proposal. In response, Netflix acknowledged that the higher valuation now required to secure Warner’s assets would make the transaction “no longer financially attractive,” effectively ending its pursuit.

The takeover battle intensified in late 2025, when Netflix struck a landmark agreement valued at approximately $83 billion to acquire Warner Bros. Discovery’s studios, film and television production assets, and streaming business, including Max and HBO content. That deal would have left Warner’s linear television brands such as CNN, outside the transaction in a separate spin-off entity.

Paramount Skydance, led by David Ellison, countered with an aggressive full-company takeover bid, launching what became a prolonged bidding war. Over the course of eight bid increases, Paramount significantly raised its offer, delivering a reported 63 percent premium over its initial September proposal and dramatically enhancing shareholder value.

Paramount’s final bid included substantial incentives: a $7 billion regulatory termination fee, a commitment to cover Warner’s breakup fee with Netflix, additional equity financing, and fewer conditions tied to cable assets. The proposal positions Paramount to create a media behemoth combining Paramount+ and Max, CBS and CNN, and two major Hollywood studios, placing it in direct competition with industry giants such as Disney and Comcast.

Netflix’s interest had been narrowly focused on Warner’s studio and streaming operations, particularly HBO Max and its vast content library. Paramount’s strategy, by contrast, seeks to absorb the entirety of Warner Bros. Discovery, including its news and cable networks such as CNN and Discovery. When completed, the deal would place CNN under the same corporate roof as Paramount’s CBS, consolidating two of the remaining major U.S. studios into a single, far-reaching media powerhouse.

Warner Bros. Discovery which is home to HBO Max, DC Studios, and globally renowned franchises including Harry Potter, had supported Netflix’s proposal for several months. That stance shifted only after Paramount raised its offer to approximately $31 per share, with revised terms that Warner’s board ultimately deemed a “company superior proposal.”

A successful Paramount acquisition would rank among the most consequential media consolidations in decades. Beyond sheer scale, the deal is expected to carry far-reaching editorial, strategic, and cultural implications, potentially redefining newsroom priorities, content investment strategies, and global distribution models.

Speaking on the development, Emperor Chris Baywood Ibe, Founder & Group Chief Executive of Baywood Group, the parent company of CBI Digital Media (owners of premium streaming platform CBI Prime) told CBI News that Netflix’s withdrawal underscores a critical industry shift. “This development reinforces the viability of targeted, culturally resonant platforms which present an excellent opportunity for CBI Prime to differentiate itself through African-oriented storytelling and compelling content that speaks directly to clearly defined audiences.”

According to Emperor Chris Baywood Ibe, increasing consolidation among global media giants creates space for emerging platforms like CBI Prime to champion original voices, independent productions and underrepresented markets, particularly across Africa and the global Black diaspora which are central pillars of CBI Prime’s long-term strategy.

Meanwhile, under Skydance ownership, Paramount’s CBS has already undergone notable editorial recalibration, including leadership and programming shifts at CBS News. Industry analysts expect that if Paramount successfully absorbs Warner’s portfolio, similar changes could extend across CNN, HBO, and other Warner-controlled platforms, reshaping content priorities and global influence.