Business Insider·2026-02-27 01:26Core Viewpoint - Netflix has abandoned its $83 billion acquisition of Warner Bros. Discovery (WBD) due to opposition from investors and political figures, particularly Republicans [1][2]. Group 1: Netflix's Acquisition Attempt - Netflix's withdrawal from the deal allows Paramount, led by Larry and David Ellison, to potentially acquire all of WBD, including its TV networks and HBO [2]. - The initial belief within Netflix was that they could secure support from Donald Trump to facilitate the merger, but this support did not materialize [3][4]. - Netflix faced significant backlash from Republicans, who criticized the company's content as "woke," further complicating the deal's approval [3]. Group 2: Investor Sentiment and Stock Performance - Netflix shareholders expressed disapproval of the acquisition, leading to a decline in the company's stock prior to the announcement of the deal's cancellation [5]. - Following the news of Netflix's exit, the company's shares rebounded by 10% as Paramount's chances of acquiring WBD improved [5]. Group 3: Implications for WBD and Paramount - The future of WBD's assets remains uncertain, including leadership changes at CNN and HBO, and the impact on Warner Bros. studio employees [5]. - If Paramount's acquisition proceeds, the Ellison family will gain control of a significant media conglomerate, including two movie studios, major news operations, and streaming services [6]. - The Ellison family's relationship with Trump may play a role in their media strategy, despite their limited experience in the industry [7][8].