Democrats are sounding the alarm about the now likely merger between two of Hollywood’s biggest studios, Warner Bros. Discovery (WBD) and Paramount Skydance—the latter of which is led by an ally of the Trump White House.
A potential deal between the two major companies cleared one of its biggest hurdles Thursday after Netflix, which has for months competed to acquire WBD, decided to walk away from negotiations. The decision came after an announcement that WBD’s Board of Directors earlier found the most recent offer from Paramount Skydance to be a “superior proposal.”
[time-brightcove not-tgx=”true”]“We’ve always been disciplined,” Netflix co-CEOs Ted Sarandos and Greg Peters said in a statement. “And at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
David Ellison, the chairman and CEO of Paramount, said in a statement that his company is “pleased WBD’s Board has unanimously affirmed the superior value of our offer, which delivers to WBD shareholders superior value, certainty and speed to closing.” WBD CEO David Zaslav expressed similar excitement about the merger, saying in a statement that once the company’s board decides to “adopt the Paramount merger agreement, it will create tremendous value for our shareholders.”
The deal still needs regulatory approval, however, though with a favorable Administration in power it is believed to push through and expected to remake the U.S. media landscape.
Among other effects, it would mean CNN, the broadcast news company that President Donald Trump has often slammed as “fake news” over its critical reporting on him, would be under the control of the Ellison family. David Ellison’s father, Larry, is one of Trump’s biggest allies and megadonors, and David Ellison has led a dramatic rightward shift in culture at CBS since taking over last year.
Paramount’s 2025 merger with Skydance was prefaced by a $16-million settlement to Trump after he sued CBS News over its 2024 campaign coverage. Since Ellison’s takeover, CBS News has also seen leadership shakeups, including the installation of conservative-leaning editor-in-chief Bari Weiss, as well as layoffs and resignations.
CNN CEO Mark Thompson tried to allay concerns internally, writing in a Thursday email to CNN staff, which the Guardian obtained, “Despite all the speculation you’ve read during this process, I’d suggest that you don’t jump to conclusions about the future until we know more.”
Here’s what to know about the deal in process—and how Democrats are reacting to what looks to be the latest Trumpworld shakeup of major media.
An aggressive bidding war
In June 2025, WBD announced that it would separate into two companies—one focused on streaming and studio businesses, and the other on its underperforming cable and TV assets.
In October, the company announced that it would review potential alternatives “to maximize shareholder value, in light of unsolicited interest the Company has received from multiple parties for both the entire company and Warner Bros.” By November, Paramount, Comcast, and Netflix already reportedly submitted bids to buy out Warner Bros.
Netflix appeared to clinch the deal with WBD in December, when it offered $82.7 billion to own HBO, HBO Max, its film studio, and its library of popular film and TV content like Game of Thrones and Harry Potter. But the deal faced pushback from both parties, including from Sen. Elizabeth Warren (D, Mass.), who raised concerns about higher media consumption prices and a possible media monopoly. Even Sen. Mike Lee (R, Utah) said the transaction would “raise serious competition questions.” Trump, noting how big a market share Netflix would secure with the deal, said it could be a “problem” and that he’ll be involved in his Administration’s approval process for the deal.
Meanwhile, Paramount continued to pursue WBD with offers, despite WBD appearing set on Netflix. At one point in December, Larry Ellison even stepped in and offered a $40.4 billion guarantee for his son’s planned acquisition. Still, WBD rejected that, so Paramount filed a suit on Jan. 12 seeking to compel WBD to disclose the details of its proposed transaction with Netflix.
Eight days later, WBD announced that it had amended the agreement with Netflix to make it all-cash. The companies also said they were engaging with competition authorities like the U.S. Justice Department and the European Commission.
On Feb. 3, Sarandos, Netflix’s co-CEO, faced questions in the U.S. Senate about the implications of a WBD-Netflix merger for workers, consumer prices, and the larger media environment. Some Republican senators used the opportunity to grill Sarandos over his platform’s alleged promotion of “woke” ideologies through its content, which he denied.
Speaking to NBC News in early February, Trump said that “both sides” have called him amid the Netflix-Paramount bidding war. “But I’ve decided I shouldn’t be involved,” the President said, adding that the Justice Department will handle it.
On Feb. 17, WBD announced it would hold a shareholders meeting on March 20 to vote on the deal with Netflix. But it also said Paramount, which had another bid rejected, would have a week to sweeten their “best and final offer.”
Paramount then submitted its revised proposal, promising $31 per share for the company, a daily “ticking fee” equal to $0.25 per share per quarter beginning after September, and a $7 billion regulatory termination fee if the merger is not approved. Under the proposal, Paramount would also shoulder a $2.8 billion termination fee, which WBD is required to pay to Netflix to terminate their proposed merger agreement.
Not so fast, Hollywood
But Netflix’s bowing out does not indicate a straightforward path for the deal to push through. The bid will have to pass antitrust tests, not only in Washington, but in other U.S. states and other nations.
Politicians from California, the heart of the U.S. filmmaking industry, weighed in on the deal.
“Paramount/Warner Bros is not a done deal,” the state’s Democratic Attorney General Rob Bonta posted on X. “These two Hollywood titans have not cleared regulatory scrutiny—the California Department of Justice has an open investigation, and we intend to be vigorous in our review.”
Tom Steyer, a Democratic candidate for governor of California, said of the deal: “Oligarchy in full effect.”
“What was true for Netflix is still true now for Paramount,” Sen. Adam Schiff (D, Calif.) said in a statement. “The merger of two of Hollywood’s biggest studios must be subject to the highest levels of scrutiny, free from White House political influence, to determine its impact on American jobs, freedom of speech, and the future of one of our nation’s greatest exports.”
Non-Californians also weighed in.
The office of Sen. Cory Booker (D, N.J.), the top Democrat on the Senate Judiciary antitrust subcommittee, invited David Ellison to testify in a hearing next week that was meant to scrutinize the WBD-Netflix deal. “In light of today’s announcement that Warner Bros. Discovery has designated Paramount’s offer a Company Superior Proposal, next week’s hearing presents a timely and appropriate opportunity for Mr. Ellison to make good on that commitment,” Booker’s aide told Deadline.
Booker was among eight senators who wrote a Feb. 19 letter to Paramount CEO David Ellison, ordering Paramount to preserve “all communications, information, documents, and any other records related to Paramount’s proposed acquisition of Warner Bros. Discovery.”
Sen. Warren (D, Mass.), who was also among those eight, said in a statement Thursday: “A Paramount Skydance-Warner Bros. merger is an antitrust disaster threatening higher prices and fewer choices for American families. What did Trump officials tell the Netflix CEO today at the White House? A handful of Trump-aligned billionaires are trying to seize control of what you watch and charge you whatever price they want. With the cloud of corruption looming over Trump’s Department of Justice, it’ll be up to the American people to speak up and state attorneys general to enforce the law.”
