Paramount Agrees To Buy Warner Bros. Discovery, Prompting Regulatory Scrutiny
Paramount Skydance reached an agreement to acquire Warner Bros. Discovery after Netflix dropped out, triggering review by the DOJ, FTC and state attorneys general amid newsroom alarm.
Overview
Netflix abruptly withdrew from the bidding, and Warner Bros. Discovery's board signed Paramount Skydance's offer into an agreement Friday afternoon, clearing the way for Paramount to acquire the entire company.
The deal would unite two legacy companies that have struggled with profitability and large streaming investments, and Paramount's streaming business posted adjusted OIBDA of minus-$158 million in Q4 2025, according to company figures.
CNN employees said they were "shaken" and fearful about potential editorial changes under David Ellison, while Democratic politicians and California's attorney general vowed close scrutiny, and regulators including the DOJ and FTC must weigh in.
The combined company would control about 20% of U.S. on-demand subscriptions, would reduce the 'big five' studios to four, and follows Paramount's $8 billion Skydance deal and Warner's $43 billion merger with Discovery.
Regulators could demand changes, state attorneys general may pursue additional probes, and it remains unclear whether CNN and CBS News would be merged or operated separately if the deal wins approval.
Analysis
Center-leaning sources frame the deal as risky for competition, using evaluative language ('big, maybe too big', 'pricing power') and foregrounding regulatory hurdles and political interference. Editorial choices prioritize antitrust concerns, Trump–Ellison ties, and potential job losses, while direct quotes (e.g., Warren) are presented as source content rather than the framing itself.
Sources (46)
FAQ
The deal is valued at approximately $110.9 billion to $111 billion, with shares valued at $31 each.
Netflix declined to match Paramount Skydance's revised superior $110.9 billion offer and withdrew on February 26, 2026, after Warner Bros. Discovery's board selected it over Netflix's prior agreement.
The deal faces review by the DOJ, FTC, and state attorneys general, including California's, amid concerns over market concentration; it requires regulatory and shareholder approval and could take 6-12 months to close.
CNN employees are shaken and fearful of editorial changes under David Ellison; it remains unclear if CNN and CBS News would merge or operate separately if approved.[1]
The combined company would control about 20% of U.S. on-demand subscriptions and reduce the 'big five' studios to four major ones.[1]
History
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