The news: Netflix has withdrawn from its $83 billion agreement to acquire Warner Bros. Discovery (WBD), clearing the path for David Ellison’s Paramount Skydance to take control of the studio and HBO Max.

• Earlier this week, WBD’s board determined that Paramount’s revised $111 billion offer constituted a “Company Superior Proposal.”
• Paramount offered $31 per share in cash, plus a quarterly ticking fee if the deal is not completed by the end of 2026. The bid includes a $7 billion regulatory termination fee and a commitment to cover the $2.8 billion breakup fee owed to Netflix.
• Netflix had four business days to counter but said Thursday it would not raise its offer, calling the transaction “no longer financially attractive.”
• Its co-CEOs Ted Sarandos and Greg Peters said the acquisition was a “nice to have” at the right price, not a “must have” at any price.