The media landscape has seen a dramatic alteration as David and Larry Ellison, through Paramount Skydance, have reportedly secured a controlling interest in Warner Bros. Discovery (WBD). This development follows the surprising withdrawal of Netflix from a significant bidding war, creating a clear path for the Ellisons' acquisition. The transaction involves substantial assets, including CBS and CNN, and is poised to reshape major segments of the entertainment industry.
Background of the Acquisition
The acquisition process for Warner Bros. Discovery has been marked by competing offers and strategic maneuvers between major media players.
Initial Bids and Competition: Early on, the Ellisons, operating through Paramount Skydance, were considered strong contenders for WBD. Netflix also entered the fray, engaging in a bidding war that initially seemed headed towards a conclusion with the streaming giant as the buyer.
Warner Bros. Discovery's Stance: Warner Bros. Discovery's board had, at various points, expressed continued formal endorsement of its deal with Netflix. However, they also provided the Ellisons with an additional opportunity to improve their bid, indicating a willingness to consider alternatives.
Netflix's Withdrawal: Netflix ultimately decided to withdraw from the bidding process. Reasons cited include the deal no longer being "financially attractive" at the price required to match Paramount Skydance's latest offer. This decision surprised many, especially considering the significant resources Netflix possesses.
Paramount Skydance's Offer: The Ellisons' offer, now positioned to succeed, is understood to encompass all of WBD. This move signifies a significant expansion for Paramount Skydance, aiming to integrate WBD's studios, streaming assets, and other properties.
Evidence of the Acquisition
Multiple reports indicate the conclusion of the acquisition process, with varying timelines.
Confirmation of Acquisition: Reports on February 26-27, 2026, suggest that David and Larry Ellison have successfully secured control of Warner Bros. Discovery. This follows Netflix's official retraction of its competing interest.
Netflix's Stated Rationale: Netflix stated that while they believed they would have been "strong stewards of Warner Bros.’ iconic brands," the transaction was a "nice to have" at the right price, not a "must have at any price." They declined to match Paramount Skydance's bid.
Paramount Skydance's Assets: The acquisition by Paramount Skydance is expected to bring a vast array of content and brands under Ellison ownership, including DC Comics, Harry Potter, Hanna-Barbera, Game Of Thrones, HBO (and HBO Max), and New Line.
Larry Ellison's Support: Sources indicated in November 2025 that Larry Ellison would provide a "full backstop" for his son David's acquisition plans, suggesting significant financial backing from the Oracle co-founder.
The Ellison Family's Media Ambitions
The acquisition aligns with the Ellison family's broader strategy to establish a significant presence in the media industry.
David Ellison's Experience: David Ellison, CEO of Paramount Skydance, has a history with successful, high-grossing films, particularly those starring Tom Cruise, such as "Top Gun: Maverick." However, some of these projects have also faced scrutiny regarding their substantial production budgets.
Larry Ellison's Role: Larry Ellison, co-founder of Oracle, is noted as the company's largest shareholder. His financial involvement is presented as crucial for backing David Ellison's ambitious media ventures.
Antitrust Concerns and Process Questions
The bidding process was not without its complexities and raised questions about fairness and regulatory hurdles.
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Antitrust Challenges: Concerns regarding antitrust issues were raised during the bidding process. Paramount's earlier letter questioned the "fairness and accuracy" of the process, suggesting that deals with either Netflix or Comcast would be "doomed to fail" due to such concerns.
Paramount's Own Issues: It was noted that Paramount's letter also seemed to disregard its own potential antitrust issues.
Netflix's Stance on Regulation: Despite these concerns, Netflix expressed that it was "not concerned about the regulatory battle ahead."
Industry Impact and Future Outlook
The acquisition is anticipated to have widespread implications for the entertainment sector.
Consolidation: The combination of Paramount Skydance and Warner Bros. Discovery represents a significant consolidation within the industry, potentially leading to fewer bidders for future film and television projects.
Asset Integration: The success of this new iteration of Warner Bros. Discovery will depend on the effective integration of its various assets, including prestige streaming services and studio operations.
Key Sources:
Citizen Watch Report: https://citizenwatchreport.com/shopping-spree-the-ellisons-buy-warner-bros-will-now-run-cbs-and-cnn-and-netflix-stock-soars/
TechCrunch: https://techcrunch.com/2026/02/26/netflix-backs-out-of-bid-for-warner-bros-discovery-giving-studios-hbo-and-cnn-to-ellison-owned-paramount/
Washington Morning: https://washingtonmorning.com/2026/02/27/david-and-larry-ellison-secure-control-of-warner-bros-discovery-following-netflix-withdrawal/
Empire Online: https://www.empireonline.com/movies/news/paramount-set-to-win-warner-bros-bid-in-shock-twist-as-netflix-backs-out-of-deal/
Business Insider: https://www.businessinsider.com/ellisons-warner-bros-discovery-paramount-new-bid-netflix-2026-2
CNBC: https://www.cnbc.com/2026/02/25/paramount-wbd-david-ellison-box-office-history.html
Forbes: https://www.forbes.com/sites/mattcraig/2025/12/06/how-the-ellisons-could-still-land-warner-bros/
New York Post: https://nypost.com/2025/11/13/media/larry-ellison-will-deliver-a-full-backstop-for-mogul-son-davids-plans-to-buy-warner-bros-discovery-sources/
