Netflix Backs Out Of Warner Bros. Deal, Paramount Set To Acquire Historic Studio

The contentious battle for the future of Warner Bros., long considered the crown jewel of Hollywood studios, is over. Netflix, which had been in the driver's seat for most of the negotiation process, is bowing to Paramount Skydance, per The Hollywood Reporter. Netflix had its foot jammed in the door with a $2.8 billion termination fee that Paramount Skydance would have to pay in full on top of whatever else they offered. Paramount Skydance swung in with a $31-per-share offer that includes other sweeteners, which Netflix deemed was too rich for their streaming media blood.

According to Netflix co-CEOs Ted Sarandos and Greg Peters, WB "was always a 'nice to have' at the right price, not a 'must have' at any price." So now David Ellison, an ally of President Donald Trump, will control what is currently considered the most talent-friendly studio in Hollywood. What will this mean for production chiefs Michael De Luca and Pam Abdy, who just delivered a killer, politically charged slate for WB with "Mickey 17," "Sinners," "Superman," "Weapons," and "One Battle After Another?" Probably nothing in the neighborhood of "good."

This story is developing.