The deal's path was contested. Warner Bros. Discovery had agreed to sell its streaming and studio businesses to Netflix, but WBD's board determined in February 2026 that Paramount's revised $31-per-share all-cash offer could reasonably be expected to lead to a "Company Superior Proposal" under that agreement. Paramount had rejected by WBD three times in late 2025 before the revised bid. Paramount had also completed its merger with Ellison's production company, Skydance, in August 2025.
The deal puts CNN and CBS News under the same owner as major film studios and streaming services. Supporters argue the scale is necessary for legacy studios to compete with tech companies that have entered entertainment. Critics' concerns about concentrated media power are not addressed in the sources reviewed for this report, and the specific regulatory conditions attached to the state settlements have not been detailed publicly.