The latest plot twist in the Warner Bros. Discovery drama? Netflix is out. Paramount is in.

Let’s start with the obvious: Shareholder value is (and should be) the primary driver at the center of this deal. Warner Bros. Discovery’s board is simply following the money. Paramount Skydance’s last‑ditch offer for WBD is financially superior. Instead of outbidding, Netflix opted out — stating that the transaction is “no longer financially attractive.”

If Netflix Raised Red Flags, Paramount Raises More

Unlike Netflix’s bid, Paramount’s offer covers all of WBD, raising concerns about overlapping control across film studios, streaming services (Pluto TV, Paramount Plus, and HBO Max), and major news and cable assets, including CBS News and CNN. Democratic lawmakers, including Senator Elizabeth Warren, have labeled a Paramount‑WBD merger an “antitrust disaster.” State‑level enforcement also remains a key risk: California Attorney General Rob Bonta confirmed an open investigation and said the deal is “not a done deal.” But none of this may matter. Why? Politics.

Politics Surrounds The WBD Deal

From the get‑go, I asserted that the biggest obstacle for Netflix wasn’t “normal” regulatory scrutiny — it was politics. Early on, President Trump said the Netflix-Warner deal “could be a problem” because of market share and stated he would personally be involved in the review process. During a recent Senate Judiciary Committee antitrust hearing, Republican lawmakers repeatedly criticized Netflix’s programming as “woke” and ideologically biased, turning scrutiny of the Netflix-Warner deal into a broader culture‑war debate. Meanwhile, Paramount CEO David Ellison attended last Tuesday’s State of the Union address as a guest of Senator Lindsey Graham at the same time Paramount’s bid was advancing.

Bottom line: Even if Netflix hadn’t walked away, it was unlikely that its deal would have made it through a politically charged regulatory process. Streaming is now big enough (and culturally influential enough) that these deals no longer live in a purely economic lane. And that’s why I’ll repeat what I wrote last December: If you think you know how this streaming saga will conclude, think again. Expect more high‑stakes corporate drama ahead. Until the regulatory process concludes and the deal closes, nothing about this deal is certain.

Forrester clients: Let’s chat more about this via a Forrester guidance session.