After a nearly three-month-long saga over the Warner Bros. Discovery acquisition, with Netflix initially slated to buy the company with its $82.7 billion bid (which included debt), the tide has turned in favor of Paramount. Paramount had made a counteroffer after that announcement in early December, demanding that the Warner Bros. board of directors consider their superior deal. Initially, the board remained steadfast in its decision to recommend Netflix’s bid. But Paramount submitted an increased offer this week valued at $111 billion, even offering to pay Warner Bros.’s $2.8 billion termination fee to Netflix. On Thursday, the board of Warner Bros. changed its recommendation from the Netflix bid to the Paramount one.
Though they had the option to increase their bid, after a visit to the White House to see if an increased bid would be likely to get government approval, Netflix withdrew its offer. Co-chief executives Ted Sarandos and Greg Peters issued a joint statement claiming that “this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.” And with that, only one potential buyer remains. Technically, Warner Bros. Discovery’s shareholders need to approve the merger, but with no other offer in place, it is no mystery how they will vote. Should the deal be approved by regulators, Warner Bros. Discovery’s new home shall be with the Ellisons. And while President Trump can hardly be confused for the Federal Trade Commission or the Department of Justice Antitrust Division, the Ellisons’ close bond with the President should surely come into play here and smooth over what was a comparatively rockier road for Netflix.
It may seem as though Paramount is offering a ludicrous amount of money to secure this deal, with its offer nearly $28 billion more than Netflix’s. Two things must be considered, though. First, unlike the Netflix deal to acquire the Streaming & Studios half of Warner Bros. Discovery but not Discovery Global, the Paramount deal is for the entire company. This means that, amongst other iconic cable channels, Paramount will now likely own the news network CNN. It must be noted that President Trump has frequently said that any sale of Warner Bros. Discovery should include CNN, as he has long bemoaned its coverage of his actions. And second, we must not forget that Larry Ellison, father of Paramount CEO David Ellison, who helped fund Skydance’s acquisition of Paramount in the first place, is the co-founder of Oracle and the sixth-richest person in the world. This deal is being funded by the Ellison family’s money, the sovereign wealth funds of Saudi Arabia, the UAE, and Qatar, RedBird Capital Partners (which is an investor in Skydance and has ties to the UAE and Qatar), and, of course, debt financing. Do with that what you will.
Now, this is a merger of two legacy studios that are still standing today. When it comes to the continued theatrical release of the ambitious, auteur-driven, and IP films Warner Bros. is known for, there should be no concerns. While Paramount+ is a core part of Paramount’s business model, the company has rarely foregone theatrical releases for streaming-exclusive premieres—though “The Legend of Aang: The Last Airbender” this year is a recent example.
But while this might be a “better deal” for the future of cinematic releases, especially compared to the slim 17-day theatrical window Netflix was proposing, this is an extremely troubling merger because of the close ties between the Ellison family and Donald Trump. Outside of their mutual favor in the press, Larry Ellison is a key Republican donor and has frequented Mar-a-Lago. This bond means this deal is another step in the President’s continuing reach over the media industry. After this purchase, the Ellison family will own CBS, CNN, and TikTok, three major news distributors. Trump has vocally advocated for the firing of journalists, comedians, and media personalities who refuse to kowtow to his MAGA agenda on broadcast TV and even pushed for the FCC to revoke ABC’s broadcast license despite the regulatory agency not technically having the power to do so. Some of the biggest headlines on this matter have largely been optimistic: Jimmy Kimmel was fired but then brought back within a week, while the ABC network continues to operate without a hitch. Quieter is the talk of smaller, individual journalists who have been systematically pushed out during both terms for their dissenting views. But no matter your political views, no supposedly democratic government should have this much influence over the media.
While some may protest that there are no signs this would fundamentally alter the types of films and shows being produced or the views they propose, a film currently in theaters demonstrates just that. This is the same company responsible for the firing and subsequent public smearing of Melissa Barrera in advance of “Scream 7” for her outspoken support of Palestine in 2023. The former protagonist of the film was unceremoniously written out, and in theaters, we instead have a spineless imitation of the original franchise. The film is not poor because of the morals of everyone involved. It is poor because it is a sloppy, messy film. But making a creative choice that altered the entire focus of the film because the publicly political beliefs of your star do not align with the message the company wants to send undoubtedly caused this film to suffer in quality. We do not have to wonder what the repercussions of this deal will mean for the creative future of cinema. They are already here.
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