Paramount’s Bold Move Wins the Warner Deal Over Netflix

A big shift happened after a streaming giant pulled out of an auction for a major film studio. The company that owns HBO, CNN and Warner’s movies decided to step in and win the deal, worth more than $111 billion. The move was led by a tech billionaire and his dad, who used their money and political ties to pressure the seller. They launched a three‑pronged strategy: a lawsuit, a takeover offer and lobbying lawmakers. The plan worked because the buyer had deep pockets and strong connections. The billionaire’s father, a tech mogul with a $200 billion fortune, helped secure funding and even offered personal guarantees. A former antitrust chief was hired to handle legal hurdles, while the buyer’s top executive attended a presidential address and posed for a photo with a senator. These actions signaled power to both the studio’s board and regulators. The seller, Warner Bros. Discovery, was also under scrutiny from lawmakers who worried about monopolies and “woke” content. The buyer’s legal team filed for a Justice Department clearance before the deal was even signed, and regulators gave no objections. This cleared the way for a smooth approval process.The rival streaming service, Netflix, had already made an offer of $82. 7 billion but chose to withdraw after the buyer’s renewed bid and political pressure. The company’s shares jumped nearly 14 % when it pulled out, showing how quickly investor sentiment can change. Netflix also faced public criticism from filmmakers and politicians who warned of job losses if it took over the studio. The buyer’s final offer included a significant equity contribution and a promise to add more funds if banks worried about leverage. This reassured the studio’s board, which had been uneasy about signing on. The board ultimately chose the higher bid, ending Netflix’s involvement. In the end, the buyer’s comprehensive approach—financial strength, political leverage, and legal readiness—proved decisive. The deal is expected to close soon, creating a stronger competitor in the streaming market.