Paramount’s $81 billion deal closes after Netflix withdraws
Key Facts
John Malone said the administration of U.S. President Donald Trump told Netflix it had no chance of securing U.S. approval for its proposed purchase of Warner Bros. Discovery. TV News Check, republishing a story from Deadline, quoted Malone as saying the administration told the company the deal "would be blocked." This remains an account attributed to Malone, not an official announcement of a regulatory decision to block the deal. The U.S. Justice Department had reviewed Netflix’s bid alongside Paramount’s competing offer, according to a statement from its Antitrust Division. The bidding process ended with Netflix’s withdrawal, followed by Paramount’s completion of its acquisition of Warner Bros. Discovery.
Netflix and Warner Bros. Discovery announced a definitive agreement on December 5, 2025, under which Netflix would acquire Warner Bros. studios and the HBO Max and HBO services. Netflix valued the combined enterprise at about $82.7 billion, with an equity value of $72 billion. But in February 2026, Warner Bros.’ board deemed Paramount’s offer of $31 a share superior to its existing agreement with Netflix. Warner gave Netflix four business days to submit a counteroffer, but the company responded less than two hours later that it would not raise its bid. Netflix said the new price required to match Paramount’s offer made the deal "no longer financially attractive," explaining its decision to withdraw.
After Netflix left the bidding, Paramount, owned by Skydance, completed its acquisition of Warner Bros. Discovery in October 2026 for $81 billion, according to the Associated Press. The resulting company became known as Skydance, ending a sale process that drew two competing bids. The deal closed after a U.S. Justice Department review, which the department said took eight months. The department added that it received more than two million documents from the parties during the investigation. At the end of its review, it concluded the deal was unlikely to harm competition or U.S. consumers.
The Justice Department’s assessment covered video-on-demand streaming, linear television and theatrical film development, saying the deal was unlikely to harm competition in those areas. In a separate court case, 12 states sued in July to oppose the acquisition, arguing it would eliminate competition and reduce consumer choice; the states and Hollywood writers later reached a settlement with Paramount. A federal court approved the states’ settlement in September, clearing the way for the deal to close. Under the settlement, Paramount pledged to increase spending on U.S. film production by at least $1.5 billion over the following five years. It also required the company to distribute 30 films a year in theaters over the following two years, then 32 films a year in the next three years.
The acquisition reshapes competition in the U.S. streaming market, where Paramount+ and HBO Max together account for about 14% of the market, according to JustWatch data cited by the Associated Press. That share is below Netflix’s 19% and Amazon Prime’s 17%, while it was described as comparable to Disney+’s. The new company plans to combine Paramount+ and HBO Max into a single service over time. The name of the new service and the effect of the merger on consumer costs and choices were not known when the Associated Press report was published. Netflix shares closed at $65.85 on October 23, 2026, according to EL7 data, which did not link the closing price to Malone’s account or the company’s withdrawal.