It withdrew its takeover bid, judging that the deal was no longer financially viable, paving the way for Paramount Skydance to prevail in the takeover battle.
will gain control of the iconic studio, along with its films and television networks, an acquisition that could significantly reshape the media landscape.
The deal also includes the acquisition of CNN, the Food Network and various sports rights. Paramount already owns traditional networks such as Nickelodeon, CBS and Comedy Central, and the acquisition of Warner Bros. will greatly enhance its influence in the media industry.
Trump has repeatedly attacked CNN for its policy coverage. In December he said it would have to be sold as part of any deal for Warner Bros, calling network executives “corrupt or incompetent”.
The case caps a months-long drama series that, if approved by regulators, will likely reshape Hollywood. The deal remains under strict regulatory review, both by the US Department of Justice and European authorities.
But California Attorney General Rob Bonta said the potential merger is “not a done deal.” “These two Hollywood titans have not passed regulatory scrutiny, the California Department of Justice has an open investigation and we intend to be rigorous in our assessment,” he wrote in a social media post.
Realignment of power in Hollywood
The history of the takeover includes political connections, as Paramount is backed by billionaire Larry Ellison and his son David Ellison, while Donald Trump’s son-in-law and adviser Jared Kushner was initially involved.
Overall, the departure of Netflix and the rise of Paramount Skydance mark a major realignment of power in Hollywood, with control of one of the most iconic studios passing into hands that could affect both cinema and media in the US and internationally.
