TLDRWarner Bros Discovery’s board has labeled Paramount Skydance’s $111bn proposal as “superior” compared to Netflix’s competing offerNetflix has withdrawn from the bidding, stating the $31 per share valuation makes the acquisition “no longer financially attractive”The Paramount proposal encompasses WBD’s complete portfolio, including HBO, CNN, and iconic franchises like Harry Potter and BatmanSignificant regulatory scrutiny lies ahead, with California’s Attorney General and federal/European authorities still reviewing the transactionEmployees at both CBS News and WBD have expressed serious concerns regarding potential layoffs and editorial direction under Ellison leadershipParamount Skydance has overcome a significant obstacle in its pursuit of Warner Bros Discovery following Netflix’s decision to exit the competition, propelling Paramount shares 6% higher in extended trading.Paramount has won the bidding war for Warner Bros. after Netflix withdrew, saying that the deal was no longer financially attractive.Paramount will now own the following:— HBO / HBO Max— CNN— CBS— DC Studios— Cartoon Network— Adult Swim— Paramount+— Nickelodeon… pic.twitter.com/utXHZ33Hdn— FearBuck (@FearedBuck) February 26, 2026On Thursday, Netflix announced it would decline to counter Paramount’s $31-per-share proposal after WBD’s board designated it as the “superior” bid. Netflix’s co-CEOs Ted Sarandos and Greg Peters explained that the elevated price point rendered the transaction “no longer financially attractive.”This decision concludes several months of competitive bidding that commenced when Paramount initially contacted WBD in September.Paramount Skydance Corporation Class B Common Stock, PSKYThe $111bn Paramount proposal encompasses WBD’s entire operations — including HBO, CNN, and valuable intellectual property like Harry Potter and Batman franchises. By contrast, Netflix’s initial $83bn December agreement covered exclusively WBD’s studio operations and streaming platforms.The Ellison family, which merged Skydance with Paramount in the previous year, stands to acquire oversight of CBS News, 60 Minutes, and CNN through this proposed consolidation.David Zaslav, WBD’s CEO, praised the transaction, stating it “will create tremendous value for our shareholders.”Netflix shares surged 8.5% in after-market trading, with investors seemingly pleased the streaming giant avoided a transaction carrying substantial antitrust exposure.Regulatory Road AheadThe transaction remains far from finalized. Approval from the US Department of Justice and European regulatory bodies is still required.California’s Attorney General Rob Bonta confirmed his office maintains an active investigation and plans to conduct a “vigorous” review. “Paramount/Warner Bros is not a done deal,” he stated via social media.Paramount enhanced its proposal by increasing the per-share price by $1 from its December offer, introduced a $0.25-per-share quarterly payment should the deal extend beyond September, and included a $7bn breakup fee if regulatory authorities reject it.Additionally, Paramount committed to assuming the $2.8bn termination payment WBD would owe Netflix upon exiting their original agreement.Staff ConcernsPersonnel at CBS News and WBD have responded to the announcement with considerable apprehension. Workers anticipate that combining two major news operations will result in workforce reductions as duplicate positions are consolidated.Several staff members have voiced unease about Bari Weiss, who was named CBS News editor-in-chief last October, potentially assuming expanded responsibilities. Weiss lacks previous television news background, and her leadership has received mixed reviews.A CBS News producer cautioned the consolidation would be “a disaster for the people who work at both companies.”Seth Stern from the Freedom of the Press Foundation issued sharp criticism, cautioning that Ellison would favor corporate priorities above journalistic independence.Political considerations have also emerged as factors. Trump, who maintains ties to Larry Ellison, has commented publicly on the bidding process on multiple occasions. David Ellison was present at Trump’s State of the Union address Tuesday as Senator Lindsey Graham’s guest.WBD has scheduled an employee town hall meeting for Friday morning. In a Thursday memorandum, CNN leader Mark Thompson encouraged staff to avoid premature conclusions.Paramount shares gained 6% in after-hours trading when the news broke.The post Paramount (PSKY) Shares Surge as Netflix Abandons Warner Bros Discovery Pursuit appeared first on Blockonomi.