Warner Bros Discovery Sale to Netflix May Be About Blocking CNN from Paramount Skydance

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Netflix appears to have won the initial round in the bidding for Warner Bros. Discovery, marking a significant win for them and potentially ending the Ellison family’s hopes of owning CNN. This deal, while not yet complete and facing challenges, could become a major power struggle that shapes the future of the entertainment industry.

Netflix and Warner Bros. Discovery (WBD) have reached a final agreement where Netflix will buy WBD’s movie and TV production studios, as well as its streaming service. This includes popular brands like Warner Bros. Pictures, HBO/HBO Max, DC, and Warner Bros. Games. The deal is worth approximately $72 billion in terms of equity and $82.7 billion overall, and will be paid for with a combination of cash and Netflix stock.

Warner Bros. Discovery (WBD) will be acquired for approximately $27.75 per share, paid in a combination of cash and Netflix stock. This price is $0.75 higher than the last offer from Paramount, which was repeatedly turned down. The deal is expected to finalize in 2026, after WBD separates its traditional TV networks into a new, publicly traded company called Discovery Global.

This restructuring is key: CNN and traditional cable channels will be part of a new unit called Discovery Global. Netflix is specifically purchasing the production studios and streaming services, and is not interested in the news operations or the traditional cable package.

How Paramount and the Ellisons Lost the Prize

For a while, most experts believed that Paramount Skydance, led by David Ellison and supported by his father, Larry Ellison (co-founder of Oracle), was the most likely buyer of Warner Bros. Discovery (WBD). Having recently agreed to an $8.4 billion deal for Paramount, the group was reportedly preparing a cash offer of around $20-$25 per share for WBD. If the deal had gone through, it would have created a massive media company by combining Paramount’s brands – including Paramount Pictures, Paramount+, CBS, Nickelodeon, and Showtime – with WBD’s portfolio like HBO, Warner Bros., DC Studios, CNN, and Discovery.

Netflix surprisingly made the highest bid—almost $28 per share—targeting both studios and streaming services, surpassing offers from Paramount and Comcast. This was the first time a company other than Paramount led the bidding, and it happened at the very moment Warner Bros. executives ended the auction and chose a winner. Interestingly, reports suggest Paramount is now considering appealing directly to Warner Bros. Discovery shareholders, arguing that their leadership misled them.

Sources close to Paramount and Skydance state the letter is a signal to Warner Bros. Discovery that they may publicly pursue a deal directly with shareholders, given the expected difficulties Netflix will face getting regulatory approval.

— Charlie Gasparino, New York Post

The situation is politically sensitive because Keith Ellison’s campaign was closely linked to CNN’s future direction.

Reports in November by The Guardian showed that top officials in President Trump’s White House secretly favored Paramount Skydance in the bidding for Warner Bros. Discovery. During at least one conversation, Larry Ellison reportedly talked with a White House official about possible changes to CNN’s programming. This included suggestions to remove several CNN hosts that Trump reportedly disliked, like Erin Burnett and Brianna Keilar, and ideas for who could replace them.

According to a follow-up report in People magazine, David Ellison, the biggest shareholder in Paramount Skydance, allegedly discussed plans with officials from the Trump administration to change CNN’s leadership and remove on-air personalities disliked by the former president. This occurred while Paramount was simultaneously gaining favor in Washington by settling a lawsuit brought by Trump regarding a 60 Minutes interview for $16 million.

News outlets pointed out that if Paramount and Warner Bros. Discovery merged, CNN would become part of a larger media group already owned by the Ellisons, joining brands like CBS News. Fast Company explained that a Skydance acquisition of Warner Bros. Discovery would create a massive portfolio including CNN, DC Studios, HBO/HBO Max, Discovery Channel, TNT, and others, in addition to their existing control of Paramount and CBS News.

Many critics were very worried about a Trump-supporting billionaire potentially taking over CNN and CBS News. Some observers in Europe and the media industry warned that such a takeover would lead to too much media consolidation and threaten a variety of viewpoints. However, with Netflix reportedly succeeding in a different deal, they may have unintentionally harmed the entire movie theater industry in the process. Ultimately, what was prevented was likely a significant reshaping of how entertainment and politics intersect in the United States.

Warner’s Split Plan Becomes a Political Shield

Warner Bros. Discovery (WBD) had hinted at the possibility of dividing its company, and recently announced plans to do so by 2026. They will create two separate public companies: one centered around streaming and film/TV production—including brands like Warner Bros., HBO, Max, and DC—and another focusing on traditional TV networks for news and sports, like CNN and TNT Sports.

The way the Netflix deal is set up guarantees certain outcomes. Specifically, CNN and other traditional cable channels won’t be part of the acquisition. Before Netflix completes the purchase, these channels will be moved into a new, independent company called Discovery Global.

Initially, this appears to be a typical financial move to separate struggling cable businesses from a rapidly growing streaming service and valuable content library. However, the current political climate suggests another possibility: separating CNN and then selling everything but CNN to Netflix would be the most straightforward way to prevent the Ellisons from unexpectedly gaining control of a major news organization as a result of a large-scale merger.

Ball’s in your court, Paramount! How messy you wanna get?

— Alex Sherman (@sherman4949) December 5, 2025

Paramount Skydance is strongly protesting Warner Bros. Discovery’s handling of the recent deal negotiations. In a sharply worded letter to WBD CEO David Zaslav, published by Mediaite, Paramount claims the process was unfair and deliberately steered towards a sale to Netflix, suggesting WBD had already decided on a preferred buyer.

Interestingly, in defending its position, Paramount’s letter actually reinforces the concerns that regulators and groups promoting media diversity had about a deal led by Byron Ellison. The letter points to reports showing that a European Commission official worried the acquisition of Warner Bros. Discovery by Ellison and Paramount could lead to too much control by a few companies, and that both European and Warner Bros. Discovery representatives wanted to maintain a variety of voices in the media.

Simply put, Paramount’s legal filing shows that European regulators were more concerned about Warner Bros. Discovery being acquired by the Ellisons than they were about Netflix purchasing the studio and its streaming services.

Look, nobody’s come out and said point-blank that Warner Bros. Discovery chose Netflix specifically to prevent the Ellisons from acquiring CNN, and that’s fine. What we’re getting from WBD’s board is the standard corporate line: Netflix simply made the better offer. They’re talking about more money on the table, a smoother financial deal, and a structure that avoids potential antitrust issues by spinning off those traditional TV networks. It’s all very…textbook, if you ask me.

But if you line up the facts, it’s hard not to see the CNN question as a major sub-plot:

  • During the Trump administration, White House officials secretly supported a potential deal between Paramount and Skydance. They also discussed with Larry Ellison, the owner of Oracle, about removing certain CNN personalities and changing the network’s content.

  • The Ellison family is rapidly expanding its influence in right-leaning media, now owning major networks like Paramount, CBS, and CBS News. They have a well-established history of supporting and aligning with Donald Trump’s political views.

  • According to a complaint filed by Paramount, European officials and groups that promote diversity in media expressed concerns that a merger between Paramount and Warner Bros. Discovery (WBD) would give one company too much control over the media landscape.

  • Warner Bros. Discovery had previously planned a setup where CNN would operate as an independent company, making it more open to public review and preventing it from being easily absorbed into a larger organization controlled by Ellison.

  • Public records of WBD CEO David Zaslav’s political contributions seem to point to only democratic donations.

Looking back, Netflix’s decision to only bid for the studios and streaming services, and its unsuitability to take on CNN, effectively blocked the possibility of CNN being acquired by the Ellison group. This also offers a degree of political protection, as Netflix isn’t associated with Trump and doesn’t align with owning a traditional cable news channel, given its focus on streaming.

What It Means Going Forward…

The deal is a big gamble for Netflix with the potential for a huge payoff. It instantly transforms them into a major studio that controls more of its content, giving them access to a large collection of popular stories, a successful gaming division—including the hit game Hogwarts Legacy—and the well-respected HBO brand. However, Netflix will also have to overcome significant challenges integrating the businesses and will likely face tough reviews from regulators in the U.S. and Europe.

The future of CNN is currently uncertain, but it now has more independence. As a key part of the new Discovery Global company, CNN will operate with its own leadership and investors. While this doesn’t completely protect its editorial decisions – Discovery Global could be bought by another company eventually – any future buyer will face intense scrutiny specifically regarding CNN, rather than being just one piece of a larger entertainment group. This puts a spotlight on the impact of ownership on the news network itself.

As a movie buff, I’m honestly shocked by how things are playing out with Paramount. It looked for a while like the Ellisons and Skydance were going to pull off a total power move – owning everything from Paramount to HBO, DC, and even CNN. But that dream is pretty much dead now, and things are getting ugly. They’re publicly claiming Warner Bros. Discovery played dirty, and meanwhile, Netflix is snapping up all the best assets. It feels like CNN is being spun off into something separate, making it much harder for anyone to acquire it later. It’s a real strategic loss for them, and a fascinating, if messy, shakeup in Hollywood.

Netflix winning out over Paramount isn’t just about which company owns popular characters like Batman, Bugs Bunny, and Harry Potter. It’s also about who doesn’t control CNN, and therefore, who has less influence over the news millions of people get.

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2025-12-05 20:01