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Power, politics and a $2.8-billion exit: How Paramount topped Netflix to win Warner Bros.

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Power, politics and a .8-billion exit: How Paramount topped Netflix to win Warner Bros.

The morning after Netflix clinched its deal to buy Warner Bros., Paramount Skydance Chairman David Ellison assembled a war room of trusted advisors, including his billionaire father, Larry Ellison.

Furious at Warner Bros. Discovery Chief David Zaslav for ending the auction, the Ellisons and their team began plotting their comeback on that crisp December day.

To rattle Warner Bros. Discovery and its investors, they launched a three-front campaign: a lawsuit, a hostile takeover bid and direct lobbying of the Trump administration and Republicans in Congress.

“There was a master battle plan — and it was extremely disciplined,” said one auction insider who was not authorized to comment publicly.

Netflix stunned the industry late Thursday by pulling out of the bidding, clearing the way for Paramount to claim the company that owns HBO, HBO Max, CNN, TBS, Food Network and the Warner Bros. film and television studios in Burbank. The deal was valued at more than $111 billion.

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The streaming giant’s reversal came just hours after co-Chief Executive Ted Sarandos met with Atty Gen. Pam Bondi and a deputy at the White House. It was a cordial session, but the Trump officials told Sarandos that his deal was facing significant hurdles in Washington, according to a person close to the administration who was not authorized to comment publicly.

Even before that meeting, the tide had turned for Paramount in a swell of power, politics and brinkmanship.

“Netflix played their cards well; however, Paramount played their cards perfectly,” said Jonathan Miller, chief executive of Integrated Media Co. “They did exactly what they had to do and when they had to do it — which was at the very last moment.”

Key to victory was Larry Ellison, his $200-billion fortune and his connections to President Trump and congressional Republicans.

Paramount also hired Trump’s former antitrust chief, attorney Makan Delrahim, to quarterback the firm’s legal and regulatory action.

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Republicans during a Senate hearing this month piled onto Sarandos with complaints about potential monopolistic practices and “woke” programming.

David Ellison skipped that hearing. This week, however, he attended Trump’s State of the Union address in the Capitol chambers, a guest of Sen. Lindsey Graham (R-S.C.). The two men posed, grinning and giving a thumbs-up, for a photo that was posted to Graham’s X account.

David Ellison, the chairman and chief executive of Paramount Skydance Corp., walks through Statuary Hall to the State of the Union address at the U.S. Capitol on Feb. 24, 2026.

(Anna Moneymaker / Getty Images)

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On Friday, Netflix said it had received a $2.8-billion payment — a termination fee Paramount agreed to pay to send Netflix on its way.

Long before David Ellison and his family acquired Paramount and CBS last summer, the 43-year-old tech scion and aircraft pilot already had his sights set on Warner Bros. Discovery.

Paramount’s assets, including MTV, Nickelodeon and the Melrose Avenue movie studio, have been fading. Ellison recognized he needed the more robust company — Warner Bros. Discovery — to achieve his ambitions.

“From the very beginning, our pursuit of Warner Bros. Discovery has been guided by a clear purpose: to honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company,” David Ellison said in a Friday statement. “We couldn’t be more excited for what’s ahead.”

Warner’s chief, Zaslav, who had initially opposed the Paramount bid, added: “We look forward to working with Paramount to complete this historic transaction.”

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Netflix, in a separate statement, said it was unwilling to go beyond its $82.7-billion proposal that Warner board members accepted Dec. 4.

“We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs,” Sarandos and co-Chief Executive Greg Peters said in a statement.

“But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” the Netflix chiefs said.

Netflix may have miscalculated the Ellison family’s determination when it agreed Feb. 16 to allow Paramount back into the bidding.

The Los Gatos, Calif.-based company already had prevailed in the auction, and had an agreement in hand. Its next step was a shareholder vote.

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“They didn’t need to let Paramount back in, but there was a lot of pressure on them to make sure the process wouldn’t be challenged,” Miller said.

In addition, Netflix’s stock had also been pummeled — the company had lost a quarter of its value — since investors learned the company was making a Warner run.

Upon news that Netflix had withdrawn, its shares soared Friday nearly 14% to $96.24.

Netflix Co-CEO Ted Sarandos arrives at the White House

Netflix Chief Executive Ted Sarandos arrives at the White House on Feb. 26, 2026.

(Andrew Leyden / Getty Images)

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Invited back into the auction room, Paramount unveiled a much stronger proposal than the one it submitted in December.

The elder Ellison had pledged to personally guarantee the deal, including $45.7 billion in equity required to close the transaction. And if bankers became worried that Paramount was too leveraged, the tech mogul agreed to put in more money in order to secure the bank financing.

That promise assuaged Warner Bros. Discovery board members who had fretted for weeks that they weren’t sure Ellison would sign on the dotted line, according to two people close to the auction who were not authorized to comment.

Paramount’s pressure campaign had been relentless, first winning over theater owners, who expressed alarm over Netflix’s business model that encourages consumers to watch movies in their homes.

During the last two weeks, Sarandos got dragged into two ugly controversies.

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First, famed filmmaker James Cameron endorsed Paramount, saying a Netflix takeover would lead to massive job losses in the entertainment industry, which is already reeling from a production slowdown in Southern California that has disrupted the lives of thousands of film industry workers.

Then, a week ago, Trump took aim at Netflix board member Susan Rice, a former high-level Obama and Biden administration official. In a social media post, Trump called Rice a “no talent … political hack,” and said that Netflix must fire her or “pay the consequences.”

The threat underscored the dicey environment for Netflix.

Additionally, Paramount had sowed doubts about Netflix among lawmakers, regulators, Warner investors and ultimately the Warner board.

Paramount assured Warner board members that it had a clear path to win regulatory approval so the deal would quickly be finalized. In a show of confidence, Delrahim filed to win the Justice Department’s blessing in December — even though Paramount didn’t have a deal.

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This month, a deadline for the Justice Department to raise issues with Paramount’s proposed Warner takeover passed without comment from the Trump regulators.

“Analysts believe the deal is likely to close,” TD Cowen analysts said in a Friday report. “While Paramount-WBD does present material antitrust risks (higher pay TV prices, lower pay for TV/movie workers), analysts also see a key pro-competitive effect: improved competition in streaming, with Paramount+ and HBO Max representing a materially stronger counterweight to #1 Netflix.”

Throughout the battle, David Ellison relied on support from his father, attorney Delrahim, and three key board members: Oracle Executive Vice Chair Safra A. Catz; RedBird Capital Partners founder Gerry Cardinale; and Justin Hamill, managing director of tech investment firm Silver Lake.

In the final days, David Ellison led an effort to flip Warner board members who had firmly supported Netflix. With Paramount’s improved offer, several began leaning toward the Paramount deal.

On Tuesday, Warner announced that Paramount’s deal was promising.

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On Thursday, Warner’s board determined Paramount’s deal had topped Netflix. That’s when Netflix surrendered.

“Paramount had a fulsome, 360-degree approach,” Miller said. “They approached it financially. … They understood the regulatory environment here and abroad in the EU. And they had a game plan for every aspect.”

On Friday, Paramount shares rose 21% to $13.51.

It was a reversal of fortunes for David Ellison, who appeared on CNBC just three days after that war room meeting in December.

“We put the company in play,” David Ellison told the CNBC anchor that day. “We’re really here to finish what we started.”

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Times staff writer Ana Cabellos and Business Editor Richard Verrier contributed to this report.

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Trump reads Bible as thousands pack National Mall for America 250 prayer rally

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Trump reads Bible as thousands pack National Mall for America 250 prayer rally

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Top Trump administration officials, Republican lawmakers and prominent Christian leaders gathered on the National Mall on Sunday for a massive prayer rally celebrating America’s upcoming 250th anniversary.

The event — “Rededicate 250: A National Jubilee of Prayer, Praise & Thanksgiving” — drew thousands for worship music, speeches and prayers focused on reaffirming the United States as “One Nation Under God.”

President Donald Trump, Vice President JD Vance, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, Director of National Intelligence Tulsi Gabbard and House Speaker Mike Johnson all addressed the gathering, alongside numerous other political and faith figures.

In a prerecorded message, Trump read from 2 Chronicles 7, reciting the well-known Bible verse calling on people to “humble themselves” and seek God.

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TRUMP CALLS ON AMERICANS TO PRAY FOR NATION AS 250TH BIRTHDAY APPROACHES: ‘ONE NATION UNDER GOD’

Attendees watch a pre-recorded video of President Donald Trump reading from the Bible during “Rededicate 250” on the National Mall in Washington, DC, on May 17, 2026.  (Matthew Hatcher / AFP via Getty Images)

“If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways, then will I hear from heaven, and will forgive their sin, and will heal their land,” Trump said.

Vance described the United States as “a nation of prayer,” saying faith has shaped the country since before its founding.

“In times of suffering and in times of triumph, millions of Americans continue to turn to prayer and their faith in God,” Vance said.

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Rubio similarly tied America’s identity to Christianity.

“From the beginning, we have carried the belief that our country represents something new in the world,” Rubio said. “But the soul of our nation has always been rooted in an ancient faith.”

Gabbard urged Americans to humble themselves before God, saying the nation’s founders “knelt” and “asked for God’s mercy” before declaring independence.

FOR 2026, YOU SHOULD MAKE A RESOLUTION TO KNOW THE REVOLUTION

Johnson delivered a prayer of “rededication,” thanking God for guiding the nation since its founding.

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“Heavenly Father, we thank you,” Johnson said. “Thank you so much for this great day that you’ve given us here, and we remember that your mighty hand has been upon our nation since the very beginning.”

Hegseth referenced George Washington’s faith, while Sen. Tim Scott, R-S.C., spoke about Christianity’s role in shaping the nation and argued prayer was central to the Civil Rights Movement.

Alveda King, niece of Martin Luther King Jr., praised Trump for encouraging Americans to “rededicate America to God.”

“This nation was founded on godly principles,” Alveda King told Fox News, adding that Martin Luther King Jr., “spoke to a crowd like this in 1963.”

Actor Jonathan Roumie, who portrays Jesus in “The Chosen,” also spoke at the event, encouraging Americans to recommit themselves to faith and prayer.

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NEARLY 500 PUBLIC FIGURES FROM POLITICS TO HOLLYWOOD WILL READ BIBLE COVER TO COVER TO MARK AMERICA’S 250TH

House Speaker Mike Johnson delivers a prayer during “Rededicate 250” on the National Mall in Washington, D.C., on May 17, 2026. (Matthew Hatcher/AFP)

The event also featured appearances from Cardinal Timothy Dolan, Bishop Robert Barron, Rabbi Meir Soloveichik, evangelist Franklin Graham, along with performances from Grammy-winning Christian artist Chris Tomlin, among others.

Many attendees wore patriotic colors as they packed the National Mall.

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Freedom 250, the nonprofit behind the event, said the gathering is part of a broader effort leading up to America’s semiquincentennial celebration on July 4, 2026.

Fox News Digital’s Stephen Sorace and The Associated Press contributed to this report.

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News Analysis: Trump spent two days with Xi in Beijing. Was he outplayed?

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News Analysis: Trump spent two days with Xi in Beijing. Was he outplayed?

As President Trump left Beijing on Friday, Chinese social media resurfaced a familiar nickname for the president — flattering at first glance — declaring that Chuan Jianguo, the “Nation Builder,” had returned.

It was not meant as a compliment. The nation he is building, according to the Chinese, is not the United States but their own, through a series of inadvertent yet costly mistakes inflicted by Trump at home and abroad.

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If the Chinese government was self-assured entering Trump’s summit with Xi Jinping, then the results of the state visit, in which Beijing refused to offer Trump any meaningful deals or concessions, signal their unmistakable confidence in American decline.

Chinese government statements in local media stating as much made their way back to Trump as he was departing, aggravating the president, a U.S. official said. But the White House secured a clarification from the Chinese that seemed to placate Trump. America was only declining under President Biden, they said — not anymore.

President Trump and President Xi Jinping tour Zhongnanhai Garden in Beijing

President Trump and President Xi Jinping tour Zhongnanhai Garden on Friday in Beijing.

(Evan Vucci / Pool via Getty Images)

The Trump administration argues the trip was a success, having secured the display of conciliation and partnership the president had sought after years of increasingly dangerous acrimony.

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Foreign policy hawks on China will be displeased with his new direction of friendship and cooperation with a government they view as openly hostile to the United States. But Trump seems to have reached a similar conclusion as past administrations, that China might require a relationship in pursuit of, as Xi put it, “constructive strategic stability.”

Trump was notably out of character throughout his stay here, deferential to his host, marveling at displays of Chinese power and reticent to speak with the press.

Five times over two days, Trump referred to Xi as his friend, taking every public opportunity to offer his compliments and pats on the back. None of it was reciprocated. The Chinese leader, Trump told Fox News in an interview, was “all business” in private, as well, apparently uninterested in his overtures of personal goodwill.

Presidents Xi and Trump tour Zhongnanhai Garden.

Presidents Xi and Trump tour Zhongnanhai Garden on Friday.

(Evan Vucci—Pool/Getty Images)

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The summit may ultimately be remembered as the moment when Trump recognized a shifting power dynamic, where an American president had the rare and uncomfortable experience of entering a meeting clearly overmatched.

“I think the most important thing is relationship,” Trump said in the interview, describing the summit as “historic.”

“It’s all about relationship,” he added. “I have a very good relationship with President Xi.”

Taiwan was discussed ‘the whole night’

Little of substance was accomplished over two days of talks. But Chinese officials expected no less after warning Trump’s team before the summit that its minimal preparation had failed to lay the groundwork for diplomatic agreements.

Still, the lack of breakthroughs may come as a relief to some in Washington. Trump appears to have held to a long-standing U.S. line on Taiwan, for now, refusing to provide Xi with clarity on whether the United States would defend the self-ruled island if China tries to reclaim it by force.

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The two men discussed the matter “the whole night,” Trump told Fox.

If China attacked, “they would be met harshly, and bad things will happen,” Trump said. Yet within the same answer, he questioned Taiwan’s “odds” against China if war were to break out, even with U.S. help, noting its proximity to the Chinese mainland and its vast distance away from the United States.

Whether Trump will proceed with arms sales to Taiwan — passed by Congress and obligated by law under the Taiwan Relations Act — is still an open question.

“If you kept it the way it is, I think China is going to be OK with that,” Trump said, referencing an ambiguous status quo around Taiwan’s status, “but we’re not looking to have somebody say, ‘Let’s go independent because the United States is backing us.’ ”

“Taiwan would be very smart to cool it a little bit,” he added. “China would be smart to cool it a little bit. They ought to both cool it.”

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President Trump departs as President Xi looks on after a visit to Zhongnanhai Garden on Friday.

President Trump departs as President Xi looks on after a visit to Zhongnanhai Garden on Friday.

(Evan Vucci/ Pool via Getty Images)

Curious company

Trump’s choice of company in the U.S. delegation left the Chinese with questions over the purpose of the trip.

Lara Trump, a Fox News host and the president’s daughter-in-law, attended alongside her husband, Eric Trump, whose presence as a private citizen running the Trump Organization was a direct appeal to Beijing to treat the administration like a family business. Brett Ratner, director of the “Rush Hour” series and a documentary on the first lady that bombed at the box office, was given prime placement along with America’s top business leaders.

The last time a secretary of Defense attended a presidential state visit to China was on Richard Nixon’s famous trip in 1972. Chinese officials were unsure what to make of Pete Hegseth’s presence — whether it was meant to convey a softer stance, a hardening one, or simply an ignorance of basic diplomatic protocol.

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Trump said he felt personally honored by the lavish welcome he received on the edge of Tiananmen Square, outside the Great Hall of the People, where China hosts all visiting dignitaries.

Before a lunch at Zhongnanhai, the secretive headquarters of the Chinese Communist Party, Trump asked Xi if he was special for getting to visit the compound. He was the fourth U.S. president to do so.

While the Trump administration offered itself glowing reviews of the outcome of the summit, the Chinese government offered little to say as he departed. And Chinese media highlighted Beijing’s resolute stance on American priorities — from trade to the Iran war — as evidence of Chinese confidence and American decline.

But all that business wasn’t the point of the trip, Trump told Fox’s Bret Baier. For the president, it was all personal.

“I want to thank President Xi, my friend, for this magnificent welcome,” Trump said in his toast at the state banquet, repeating the personal overture. “The American and Chinese people share much in common. We value hard work. We value courage and achievement. We love our families and we love our countries.

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“Together, we have the chance to draw on these values to create a future of greater prosperity, cooperation and happiness and peace for our children,” Trump added. “We love our children. This region and the world — it’s a special world, with the two of us united and together.”

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Video: Cassidy Loses Primary After Drawing Trump’s Ire

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Video: Cassidy Loses Primary After Drawing Trump’s Ire

new video loaded: Cassidy Loses Primary After Drawing Trump’s Ire

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Cassidy Loses Primary After Drawing Trump’s Ire

Republican Senator Bill Cassidy lost his Louisiana primary on Saturday after President Trump targeted him for voting to impeach him in 2021. The two-term senator took veiled swipes at the president in his concession speech.

Thank you, Louisiana! I want to say thank you to a very special man who you all know, the best president this country has ever had, President Donald Trump. I’ve been able to participate in democracy. And when you participate in democracy, sometimes it doesn’t turn out the way you want it to. But you don’t pout. You don’t whine. You don’t claim the election was stolen. Our country is not about one individual. It is about the welfare of all Americans, and it is about our Constitution. And if someone doesn’t understand that and attempts to control others through using the levers of power, they are about serving themselves. They’re not about serving us.”

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Republican Senator Bill Cassidy lost his Louisiana primary on Saturday after President Trump targeted him for voting to impeach him in 2021. The two-term senator took veiled swipes at the president in his concession speech.

By Cynthia Silva

May 17, 2026

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