In a stunning reversal that has sent shockwaves through Hollywood and the media world, Netflix withdrew from its bid to acquire Warner Bros. Discovery on Thursday, clearing the path for Paramount Skydance to take control of CNN and other major entertainment assets in a deal critics say bears the unmistakable fingerprints of President Donald Trump.
The streaming giant announced it would not match Paramount’s revised $111 billion offer for all of Warner Bros. Discovery, calling the deal “no longer financially attractive.” The decision came hours after Warner Bros. Discovery’s board declared Paramount’s $31-per-share bid superior to Netflix’s earlier $82.7 billion proposal, which would have acquired only the studio’s film and HBO divisions.
The abrupt withdrawal followed a Thursday White House meeting between Netflix co-CEO Ted Sarandos and Department of Justice officials, including Attorney General Pam Bondi. Sarandos also met with White House Chief of Staff Susie Wiles. According to CNN’s Brian Stelter, Sarandos “left the White House in a not very happy mood.”
Netflix co-CEOs Ted Sarandos and Greg Peters called the transaction “a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
The collapse of Netflix’s bid hands victory to David Ellison, the 43-year-old CEO of Paramount Skydance and son of Oracle billionaire Larry Ellison, a close Trump ally. Unlike Netflix’s targeted approach, Paramount’s offer includes all Warner Bros. Discovery assets—notably CNN, the cable news network Trump has repeatedly attacked as “dishonest” and a “disgrace.”
The timing and circumstances have fueled accusations of political interference. Earlier this week, Trump posted on Truth Social demanding Netflix fire board member Susan Rice “IMMEDIATELY or pay the consequences.” Rice, who served as national security advisor under President Barack Obama, recently said on a podcast that “it’s not going to end well” for companies that “take a knee” to Trump.
The Wall Street Journal reported in December that David Ellison offered assurances to Trump administration officials that he would make sweeping changes to CNN if he acquired Warner Bros. Discovery. Trump himself has stated publicly, “It’s imperative that CNN be sold.”
CNN anchor Jake Tapper broke the news to viewers—and his own colleagues—during Thursday’s “The Lead,” telling his production crew the development affected “everybody I’m looking at right now in the studio.” Paramount’s offer, he explained, includes “the whole enchilada, including us here at CNN.”
The deal raises alarm bells for media watchdogs who see parallels to Paramount’s recent transformation of CBS News. After taking over CBS last year, David Ellison appointed Bari Weiss, an opinion journalist with no television news experience, as editor-in-chief. Her tenure has sparked controversy over editorial decisions, including pulling a “60 Minutes” segment—which correspondent Sharyn Alfonsi called a “political” move—before it ultimately aired four weeks late.
Media Matters senior fellow Matt Gertz wrote that the outcome “reeks of a ‘political deal’ in which the president steered the ownership of a major news outlet to his crony.” Trump’s public statements and White House leaks, Gertz argued, made clear that “his administration would corruptly wield its regulatory power to thwart rival bidders.”
Free Press, a media advocacy organization, condemned the arrangement: “This deal endangers our democracy by giving a family of pliant billionaires even more control of vast swaths of our news coverage, TV stations and movie studios.”
The deal drew opposition from Hollywood figures as well—though with notable divisions. Director James Cameron, known for blockbusters like “Avatar” and “Titanic,” had opposed Netflix’s bid over concerns about theatrical releases. Actor Mark Ruffalo questioned Cameron’s stance, asking whether he was “also against the monopolization that a Paramount acquisition would create.”
Senator Ted Cruz joined the political fray, questioning whether Netflix stood by Rice’s comments, which he characterized as “threatening punishment and persecution for half of America.”
CNN CEO Mark Thompson attempted to calm staff anxieties in an internal memo, urging employees not to “jump to conclusions about the future until we know more” and reminding them of their “duty to our audience.”
The transaction still requires regulatory approval from the Department of Justice’s antitrust division and European authorities. Warner Bros. Discovery CEO David Zaslav expressed confidence the deal would proceed, saying it “will create tremendous value for our shareholders.”
Netflix shares surged nearly 10 percent in extended trading Thursday as investors celebrated the company’s decision to walk away from what many analysts considered an overpriced acquisition. Wall Street appeared to view the withdrawal as financially prudent, regardless of the political circumstances.
For CNN’s employees, the future remains uncertain. With Paramount’s track record at CBS News—which has seen departures of veteran journalists including Anderson Cooper, who announced he would leave “60 Minutes” last week—many fear similar upheaval ahead.
The deal represents the latest consolidation in a media landscape increasingly dominated by billionaire owners with close ties to the Trump administration, raising fresh questions about the independence of American journalism in an era of unprecedented political pressure.
