Paramount Skydance is expected to own all of Warner Bros Discovery (WBD) after Netflix walked away from its $83 billion transaction that was negotiated a few months ago. Although Paramount had initially lost out to Netflix, it continued to pursue the deal, and its final offer of $31 share made the giant streaming channel decide not to top up the $31 offer from Paramount.

On Thursday, the Warner Bros Discovery board said that the offer from Paramount was superior to the existing deal with Netflix. The company had also agreed to pay the $2.8 billion breakup fee that was imminent if the WBD deal with the streaming giant did not go through. There is also a $7 billion breakup fee if the proposed merger between WBD and Paramount Skydance does not get regulatory approval. 

Netflix has officially indicated that it cannot match the $31 per share all-cash offer from Paramount.

Both Paramount Skydance and Netflix had been pursuing the Warner Bros acquisition for months, while Disney continued to wait for the best offer. The Netflix deal was not welcomed by its shareholders as the company’s stock fell after the deal was announced. However, the streaming giant’s share rebounded by 10% shortly after Netflix announced its decision to walk away from the deal.

Paramount is poised to be a titan in media if the deal goes through with regulatory approval, and there is a strong possibility that it will. Paramount Skydance, led by David Ellison, the son of Oracle founder Larry Ellison, has been consolidating its hold on media companies in America over the past few years.

Assuming that the deal goes through, Paramount Skydance will own two movie studios, two major streaming services, two popular news operations, and a broadcasting network that has a multi-year NFL deal. This is a huge portfolio for the Ellison family.