Politics
Israel's religious right has a clear plan for Gaza: 'We are occupying, deporting and settling'
Carrying planks of plywood, a group of Israeli settlers pushed past soldiers guarding the barrier surrounding the Gaza Strip and quickly got to work. Within minutes, the young men had erected two small buildings — outposts, they said, of a future Jewish settlement in the war-torn Palestinian enclave.
Their movement had hungered for this moment for years, but now, after Oct. 7, they felt it was just a matter of time before Jews would be living in Gaza again. “It is ours,” said David Remer, 18. “[God] said it is ours.”
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1. Protesters march to a border checkpoint in Kerem Shalom, Israel, hoping to block aid shipments into war-torn Gaza. 2. Israeli troops stand by at Erez Crossing as activists try to enter the military buffer zone into Gaza. 3. Israeli troops remove a protester from a sit-in intended to block shipments of aid into the Gaza Strip.
Religious Zionists, who believe the Jewish people have divine authority to rule from the Jordan River to the Mediterranean Sea, make up only around 14% of Israel’s population. But in recent years they have greatly expanded their influence in the military, the government and society at large, and their often extremist ideology is helping shape Israel’s war against Hamas.
Although they are not politically homogeneous, most religious Zionists embrace far-right views. They loudly oppose a cease-fire deal to bring home Israeli hostages, and have repeatedly blocked humanitarian assistance from entering Gaza by standing in front of aid trucks.
They see the deadly Oct. 7 Hamas-led attack on Israel as proof of their longtime assertion that peace cannot be made with the Palestinians, and view Gaza as a territory that they have a religious obligation to conquer. Increasingly, they have called for the expulsion of the 2.3 million Palestinians living there.
Jewish settler activists hastily erect outposts inside the Israeli military’s buffer zone for the Gaza Strip at the Erez crossing.
First, they dream of reestablishing Gush Katif, a bloc of Jewish settlements that existed in Gaza until Israel withdrew from the enclave in 2005.
It’s a goal embraced by some of the top leaders in Israel’s far-right government, many of whom appeared at a recent Jerusalem rally pushing for Gaza’s resettlement. While videos played showing Israel’s brutal military assault on the enclave and organizers shared brochures promising new houses with views of the Mediterranean Sea, National Security Minister Itamar Ben-Gvir sang religious songs alongside participants and told them: “Now is the time to return home.”
On the battlefield, some religious soldiers have recorded themselves dancing with Torah scrolls and waving the orange flags of Gush Katif. Other combatants travel with mezuzahs, small boxes containing biblical Scriptures meant to be hung outside Jewish residences, to affix to Palestinian homes.
Reuven Gal, former chief psychologist for the military and a researcher at the Israel Institute of Technology, says that for many soldiers, the Gaza conflict that has killed more than 30,000 Palestinians is “not just a military operation.”
“For them,” he said, “it’s a holy war.”
Top, Settler Avraham Sheinman, overlooking Nablus in the West Bank from Mt. Gerizim, points out passages in his Torah that he says show Jews have a religious obligation to conquer Palestinian territories. Bottom, Yishai Sheinman, left, and father Avraham Sheinman uncover the Torah in a synagogue in Yitzhar, West Bank. Yishai, 27, belongs to a violent extremist group devoted to expanding Israeli control of the region.
Yair Margolis, an army reservist who was called up from his yeshiva studies last year to fight in Gaza, said during a recent break from battle that the war had a clear spiritual dimension.
“Going back to that land is returning home,” he said. “This is where we are from, and this is what we are fighting for.”
It’s a vision starkly at odds with Israel’s mainstream, even as the country’s political center has shifted discernibly to the right in recent years. A January poll by Israel’s Channel 12 broadcaster found that 51% of Israelis oppose building Jewish settlements in Gaza, compared with 38% who support doing so.
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1. Israel’s national security chief and leader of the far-right Jewish Power Party, Itamar Ben-Gvir, center, called at a recent convention for rebuilding Jewish settlements in Gaza and expanding those in the occupied West Bank. 2. The crowd celebrates at the Jerusalem convention, organized by far-right activists seeking expansion onto more Palestinian land.
Prime Minister Benjamin Netanyahu, a right-wing populist, has called settling Gaza “unrealistic.” But in 2022, as his ongoing corruption trials left him isolated, Netanyahu made a deal with several religious Zionist parties to form a coalition government, and his political future is now closely tied to theirs.
Beyond a pledge to maintain indefinite military control over Gaza and eventually turn over administrative duties to Palestinians, Netanyahu’s postwar strategy remains murky, leaving a vacuum, political analysts say, that the religious right is eager to fill.
Israeli forces arrive at the Erez border crossing next to the northern Gaza Strip.
In a recent video from Gaza circulated on social media, an Israeli soldier dressed in camouflage stands smiling with a machine gun in front of a bombed-out building. He directly addresses Netanyahu, who is widely known by his nickname “Bibi.”
“We are occupying, deporting and settling,” the soldier says. “Do you hear that, Bibi?”
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During the war in 1967, Israel captured a wide swath of Palestinian land that included the West Bank, East Jerusalem and the Gaza Strip.
Almost immediately, Jewish settlers began establishing communities in each of them, displacing Palestinians who lived there.
Tuvia Levy, far right, and Marom Harel, center, look over Palestinian towns from a security outpost in Yitzhar, West Bank. Both men live in West Bank settlements and were called up for reserve duty after Oct. 7.
While the settler movement isn’t composed just of religious people, and over the years it has received backing from both right- and left-wing Israeli governments, it is ideologically driven by practitioners of Orthodox Judaism who believe God gave what they call the Land of Israel exclusively to the Jews.
Unlike the ultra-Orthodox, some of whom oppose the Zionist project and decline to serve in the military, religious Zionists embrace the teachings of rabbis who say believers have a spiritual imperative to expand Israel’s borders.
By 2005, around 8,000 mostly religious Zionists were living in Gaza, often in neighborhoods that resembled Southern California subdivisions, with their orderly rows of red-tile-roofed homes. The settlements were heavily guarded by the military, and residents frequently clashed with their Palestinian neighbors.
Amid growing concerns about high casualties among the troops tasked with protecting the settlements, Prime Minister Ariel Sharon ordered a complete Israeli withdrawal from the enclave. Sharon, who was a supporter of settlers in the West Bank, now instructed soldiers to forcibly remove them from Gaza.
The “disengagement” from Gaza, with its scenes of screaming settlers being pulled from their homes and synagogues, was transformative for religious Zionists. Many vowed to gain more influence in the traditionally secular institutions they felt had betrayed them.
“For them it was a traumatic event,” said Yagil Levy, a professor of political sociology at the Open University of Israel. “They want to erase this trauma by any means.”
Palestinians take in the rubble left by an Israeli airstrike on residential buildings and a mosque in Rafah, Gaza Strip.
(Fatima Shbair / Associated Press)
That meant building a political movement that has sought “to push the government as far right as it can go” and “completely demolish any talk of a Palestinian state,” said political scientist Dahlia Scheindlin. Over time, she said, ideas that once seemed extreme — like expanding settlements in the West Bank — became normalized.
Helping their cause were the country’s changing demographics: Religious Zionists, like the ultra-Orthodox, were having children at a much higher rate than their secular peers.
At the same time, they were making new inroads in the army.
The military academy that has become the West Point for the religious right is built atop a wind-swept hill in the West Bank settlement of Eli. Here, young men wearing yarmulkes spend their days studying both the Torah and military strategy.
For many years, religious Zionist families were hesitant for their sons to fulfill Israel’s mandatory three-year army service, worried that exposure to secular peers would erode their faith. This school, Bnei David, promised to minimize that risk, offering teenage boys a chance to fortify their religious beliefs before entering the military. Its website boasts of starting a “quiet revolution in the Israel Defense Forces.”
Students are taught that God “wants a people of Israel, and there is no state of Israel if there isn’t a strong army,” said Rabbi Eli Sadan, the school’s founder. They’re also taught by instructors who oppose the presence of women in the military and who have described gay people as “sick and perverted.”
Speaking from behind a large desk strewn with rabbinical texts, Sadan said he supports a scorched-earth military strategy in Gaza, “so Israel’s enemies will see the ruins and think: ‘I don’t want to mess with the Jews.’”
He is against the rebuilding of Palestinian society in Gaza, where at least half of all buildings have been damaged or destroyed during Israel’s fierce bombing campaign. “We must eliminate the possibility of Gazans returning,” he said, arguing that displaced civilians should be forced to live in tents for many years until they decide “to emigrate willingly.”
Top, Rabbi Eli Sadan, the founder of the Bnei David military academy, said he supports a scorched-earth strategy in Gaza. Bottom, Students attend a class in a room at Bnei David that honors alumni who died serving in the Israeli military. The school has lost 18 former students in the Gaza war.
Sadan said his school, which recently hosted events with both Netanyahu and Israel’s defense minister, has produced 3,000 soldiers, more than 50% of whom have risen to the rank of officer or higher. Since the conflict broke out, 18 alumni have died in Gaza.
The rise of religious military academies like this one has dramatically changed the makeup of the army, said Levy, the sociologist. Religious Zionists made up about 3% of officer school graduates in 1990, Levy’s research shows; in 2018, they accounted for over a third.
Levy, who has written about what he calls the “theocratization of the Israeli military,” said the trend has caused conflicts, with some religious soldiers refusing to serve alongside women.
A student does push-ups at the religious and military academy for religious Zionists.
A pressing question, he said, is whether religious soldiers would comply with orders to forcibly remove Jewish residents from a settlement — a scenario that could play out under the creation of a Palestinian state.
Sadan said he teaches his students to always heed commands from military superiors. But during the 2005 disengagement from Gaza, other rabbis called on soldiers to refuse orders, and some did.
“What we see is growing resistance in the ranks,” Levy said. “They’re trying to challenge the formal codes of the military.”
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Those hoping to establish Jewish settlements in Gaza say they will model their strategy on the West Bank, where today 500,000 settlers live among 3 million Palestinians.
Since Oct. 7, tensions here have been simmering as the line between settlers and soldiers has become increasingly blurred.
Reservist Yosef Shalom Sheinman, 30, was called up after Oct. 7 to help protect Jewish settlements in the West Bank, where he lives.
After the Hamas attack in southern Israel killed around 1,200 people, hundreds of thousands of Israeli reservists were called up for duty. Many reservists in the West Bank were instructed to don uniforms and guard their own communities.
Among them were Yosef Shalom Sheinman, 30, who is from Har Bracha, a mountain settlement overlooking the Palestinian city of Nablus.
Sheinman’s parents helped found Har Bracha in 1987 amid protests from Jewish leftists and the Palestinians who once grazed sheep here. His younger brother, 27-year-old Yishai, belongs to a famously violent extremist group known as the Hilltop Youth, which is devoted to expanding Israeli control of the region. “These are kids who would eat Arabs for breakfast,” their father says proudly.
For decades, Israeli soldiers have been deployed throughout the West Bank to protect existing settlements, which most of the world considers illegal under international law. But the soldiers are also often instructed to stop the building of illegal settlement outposts. In the past, they sometimes clashed with Yishai Sheinman, tearing down new outposts he and his friends had erected.
Like many religious Zionists, Yishai Sheinman, his wife, Rashid, and their children live in a settlement on Palestinian territory despite the disapproval of Washington and international law.
Now many of the soldiers in the region are his friends — or, in the case of his older brother, his family.
The reservists are not curtailing settlement expansion, the older brother said. Instead, they’re focused on patrolling nearby Palestinian villages — and making sure they aren’t growing. His unit recently cut a new road through a stretch of hillside between a Palestinian hamlet and Har Bracha, in effect claiming the area for the settlement.
“This is our land,” he said. “And God is with us.”
On a recent afternoon, Sheinman stood with his father, Avraham, taking in views sweeping from the peaks of Jordan to the skyscrapers of Tel Aviv. Avraham Sheinman clutched a well-worn Torah, which he consulted frequently to highlight passages that he says show Jews have a religious obligation to be here. “We have a commandment to conquer it,” he said.
He spoke of a war with Palestinians, but also of “an inner war” within Israel.
“Who are we? What direction are we going?” he asked. “Are we going in the direction of our destiny as a chosen people in the Land of Israel — as a Jewish state according to Jewish law? Or are we a secular leftist copy of Europe or America?”
Israeli troops try to to stop one of many far-right activists from entering the Erez Crossing military buffer zone into Gaza.
Many on the other side of the political divide view that question with the same urgency.
In an interview with Sky News this month, writer and historian Yuval Noah Harari said the biggest threat to Israel is not Hamas, Hezbollah or Iran, but Jewish extremism: “There is really a battle for the soul of the Israeli nation between patriotism on the one side and ideals of Jewish supremacy on the other.”
It is too early to say exactly how the Hamas attack and the Gaza war will shape that debate. But early indications suggest they have awakened new support for the right.
Protests near the Egyptian border to halt aid delivery into Gaza were first organized by religious Zionists, but now draw secular participants. And while much of the international community holds out hope that the West Bank, East Jerusalem and Gaza will one day be recognized as a Palestinian country, faith among Israelis in a two-state solution has dimmed.
A Tel Aviv University poll found that support for peace negotiations among Israeli Jews had fallen from 48% just before the Hamas attacks to 25% a few weeks after.
Supporters of Jewish settlements talk with Israeli troops in an effort to enter war-ravaged Gaza.
Leaders of the religious right, meanwhile, are using the war as an opportunity to push through extreme policies.
Ben-Gvir, the national security chief, leads the Jewish Power party and has helped arm thousands of Israeli civilians by relaxing restrictions on gun ownership. Finance Minister Bezalel Smotrich, head of the Religious Zionist Party, recently announced plans to expand settlements in the West Bank by more than 3,000 homes. Both Smotrich and Ben-Gvir, who has been convicted of inciting racism and supporting terrorism, live in the West Bank.
Life for Palestinians there has gotten markedly worse since Oct. 7, with more than 600 settler attacks against Palestinians recorded since the war broke out, according to the United Nations, and more than 1,200 Palestinians displaced from their homes.
Palestinian activist Issa Amro lives in the historic center of Hebron, the largest city in the West Bank, in the midst of a heavily guarded Jewish settlement.
On the day of the Hamas attack, he was returning from work when several neighbors surprised him in an olive grove and began assaulting him. Some, he said, wore army uniforms probably left over from their military service.
Palestinian Issa Amro says he has lived in fear since he was assaulted by settlers, then detained and beaten at a military base. He’s surrounded in Hebron, West Bank, by a heavily guarded settlement.
Amro was then taken to a military base, where he says he was detained for 10 hours and beaten.
He said he lives in fear. Every day he passes former Palestinian businesses shuttered by settlers, as well as a sign that says: “We’re occupying Gaza now.”
“Every meter I walk, I think I may be shot,” he said.
Amro said he doesn’t blame the settlers so much as the political leaders who have allowed the settlements to flourish. He pointed to Netanyahu, who allied with Ben-Gvir and Smotrich, and to Donald Trump, who as president abandoned Washington’s long-held position that West Bank settlements violate international law. “Netanyahu made them mainstream,” Amro said. “The Trump administration made them mainstream.”
An Israeli soldier orders Palestinian children in the West Bank city of Hebron to go back inside, barring them from playing on the street.
President Biden has since reversed the U.S. stance on West Bank settlements — and recently imposed sanctions on four Israeli settlers for carrying out violence against Palestinians. And Secretary of State Antony J. Blinken says Washington opposes the reoccupation of the Gaza Strip by Israel and any reduction of the Palestinian territory’s size.
Joel Carmel, a former Israeli soldier who is now a peace activist, said the future of Jewish settlements in Gaza may depend on who wins the U.S. election in November.
“Probably the only thing holding back the resettlement of Gaza is the Biden administration,” he said. “And who knows how long that’s going to last.”
Many Palestinians in the West Bank think it’s only matter of time before Israeli settlers move permanently into Gaza.
Areej Al Jaabari, who lives in Hebron, West Bank, points toward the settlement where Israel’s national security minister lives.
Areej Al Jaabari, a mother in Hebron, has watched as settlements have crept ever closer to her family home. Ben-Gvir lives in a sprawling suburban community she can see from her living room window.
“They’re gradually accomplishing their goals,” she said of the settlers. “Eventually they will control everything in Gaza too.”
Linthicum reported from Jerusalem and from Yitzhar, Har Bracha and Hebron in the West Bank. Times staff photojournalist Marcus Yam contributed to this report from Erez Crossing, Israel.
Politics
Video: Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry
new video loaded: Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry
transcript
transcript
Bill Clinton Says He ‘Did Nothing Wrong’ in House Epstein Inquiry
Former President Bill Clinton told members of the House Oversight Committee in a closed-door deposition that he “saw nothing” and had done nothing wrong when he associated with Jeffrey Epstein decades ago.
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“Cause we don’t know when the video will be out. I don’t know when the transcript will be out. We’ve asked that they be out as quickly as possible.” “I don’t like seeing him deposed, but they certainly went after me a lot more than that.” “Republicans have now set a new precedent, which is to bring in presidents and former presidents to testify. So we’re once again going to make that call that we did yesterday. We are now asking and demanding that President Trump officially come in and testify in front of the Oversight Committee.” “Ranking Member Garcia asked President Clinton, quote, ‘Should President Trump be called to answer questions from this committee?’ And President Clinton said, that’s for you to decide. And the president went on to say that the President Trump has never said anything to me to make me think he was involved. “The way Chairman Comer described it, I don’t think is a complete, accurate description of what actually was said. So let’s release the full transcript.”
By Jackeline Luna
February 27, 2026
Politics
ICE blasts Washington mayor over directive restricting immigration enforcement
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U.S. Immigration and Customs Enforcement (ICE) accused Everett, Washington, Mayor Cassie Franklin of escalating tensions with federal authorities after she issued a directive limiting immigration enforcement in the city.
Franklin issued a mayoral directive this week establishing citywide protocols for staff, including law enforcement, that restrict federal immigration agents from entering non-public areas of city buildings without a judicial warrant.
“We’ve heard directly from residents who are afraid to leave their houses because of the concerning immigration activity happening locally and across our country. It’s heartbreaking to see the impacts on Everett families and businesses,” Franklin said in a statement.
“With this directive, we are setting clear protocols, protecting access to services and reinforcing our commitment to serving the entire community.”
ICE blasted the directive Friday, writing on X it “escalates tension and directs city law enforcement to intervene with ICE operations at their own discretion,” thereby “putting everyone at greater risk.”
Mayor Cassie Franklin said her new citywide immigration enforcement protocols are intended to protect residents and ensure access to services, while ICE accused her of escalating tensions with federal authorities. (Google Maps)
ICE said Franklin was directing city workers to “impede ICE operations and expose the location of ICE officers and agents.”
“Working AGAINST ICE forces federal teams into the community searching for criminal illegal aliens released from local jails — INCREASING THE FEDERAL PRESENCE,” the agency said. “Working with ICE reduces the federal presence.”
“If Mayor Franklin wanted to protect the people she claims to serve, she’d empower the city police with an ICE 287g partnership — instead she serves criminal illegal aliens,” ICE added.
DHS, WHITE HOUSE MOCK CHICAGO’S LAWSUIT OVER ICE: ‘MIRACULOUSLY REDISCOVERED THE 10TH AMENDMENT’
U.S. Immigration and Customs Enforcement blasted Everett’s mayor after she issued a directive restricting federal agents from accessing non-public areas of city facilities without a warrant. (Victor J. Blue/Bloomberg via Getty Images)
During a city council meeting where she announced the policy, Franklin said “federal immigration enforcement is causing real fear for Everett residents.”
“It’s been heartbreaking to see the racial profiling that’s having an impact on Everett families and businesses,” she said. “We know there are kids staying home from school, people not going to work or people not going about their day, dining out or shopping for essentials.”
The mayor’s directive covers four main areas, including restricting federal immigration agents from accessing non-public areas of city buildings without a warrant, requiring immediate reporting of enforcement activity on city property and mandating clear signage to enforce access limits.
BLOCKING ICE COOPERATION FUELED MINNESOTA UNREST, OFFICIALS WARN AS VIRGINIA REVERSES COURSE
Everett, Wash., Mayor Cassie Franklin said her new directive is aimed at protecting residents amid heightened immigration enforcement activity. (iStock)
It also calls for an internal policy review and staff training, including the creation of an Interdepartmental Response Team and updated immigration enforcement protocols to ensure compliance with state law.
Franklin directed city staff to expand partnerships with community leaders, advocacy groups and regional governments to coordinate responses to immigration enforcement, while promoting immigrant-owned businesses and providing workplace protections and “know your rights” resources.
The mayor also reaffirmed a commitment to “constitutional policing and best practices,” stating that the police department will comply with state law barring participation in civil immigration enforcement. The directive outlines protocols for documenting interactions with federal officials, reviewing records requests and strengthening privacy safeguards and technology audits.
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Everett, Wash., Mayor Cassie Franklin issued a directive limiting federal immigration enforcement in city facilities. (iStock)
“We want everyone in the city of Everett to feel safe calling 911 when they need help and to know that Everett Police will not ask about your immigration status,” Franklin said during the council meeting. ”I also expect our officers to intervene if it’s safe to do so to protect our residents when they witness federal officers using unnecessary force.”
Fox News Digital has reached out to Mayor Franklin’s office and ICE for comment.
Politics
Power, politics and a $2.8-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.
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.
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)
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.”
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.
“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 Chief Executive Ted Sarandos arrives at the White House on Feb. 26, 2026.
(Andrew Leyden / Getty Images)
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.
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.
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.
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.”
Times staff writer Ana Cabellos and Business Editor Richard Verrier contributed to this report.
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