CNN’s Jake Tapper reported Thursday that Netflix had dropped its bid to buy the network’s parent company, effectively handing CNN to the MAGA-friendly owner of Paramount.
CEO David Ellison, the son of multibillionaire Larry Ellison, has been leading the overhaul of CBS News to appeal to conservative audiences, and now he’s on track to do the same to what is perhaps President Donald Trump’s most hated network.
On The Lead, Tapper, 56, introduced the topic by noting that it “affects everybody I‘m looking at right now in the studio.”
“Paramount has submitted a superior offer, according to Warner Bros. Discovery‘s board. As I‘ve noted, Warner Bros. Discovery is the parent company of CNN,” Tapper said. He has been at the network since 2012.
CNN Chief Media Analyst Brian Stelter, who has been with the network since 2013 (with a two-year break), then weighed in.
“In this corporate tug of war, it seems Netflix has suddenly let go of the rope,” he said.
“There‘s a lot, of course, that could still happen here,” he continued, citing regulatory hurdles, “but the big news this afternoon is that Paramount suddenly is in a much stronger position to take over CNN and the rest of the Warner Bros. Discovery company, which includes HBO and the Warner Bros. movie studio, and all those other assets.”
Netflix’s decision to back down comes two days after Paramount upped its bid from $30 to $31 per share. While Netflix’s bid was only for Warner Bros. Discovery’s streaming service and film studio, Paramount wanted everything.
Warner Bros. Discovery CEO David Zaslav said Thursday that the bidding war has significantly increased the conglomerate’s value.
He added, per CNN, that the company has “thus far achieved a 63 percent increase in value versus the first offer received in September, delivering significant value for WBD shareholders throughout the process.”
“Our focus has and always will be maximizing value and certainty while mitigating downside risks,” he continued, “and the board will evaluate any proposal against that standard, with the objective of delivering the best deal for our shareholders.”
The review process for Paramount’s acquisition of Warner Bros. Discovery will take several months, according to CNN.
In a statement before Netflix backed out of the race, Ellison said: “We are 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.”
