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.
Politics
Video: Senate Republicans Block Limits to Trump’s War Powers
new video loaded: Senate Republicans Block Limits to Trump’s War Powers
transcript
transcript
Senate Republicans Block Limits to Trump’s War Powers
Senate Republicans voted against a Democratic bill that would have required President Trump to obtain congressional authorization to continue waging war against Iran.
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“The yeas are 47. The nays are 53. The motion to discharge is not approved.” “President Trump decided to attack Iran. That decision was profound, deliberate and correct. The president understands the weight of war.” “Why is Donald Trump hellbent on making history repeat itself? Why is he plunging America headfirst into a war that Americans do not want, and which he cannot even explain? The American people deserve a say, and that is what our resolution is about.”
By Shawn Paik
March 5, 2026
Politics
DHS defends McLaughlin against allegations husband’s company profited millions from ad contracts: ‘Baseless’
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EXCLUSIVE: Newly obtained financial statements shed light on claims that former Department of Homeland Security (DHS) Assistant Secretary Tricia McLaughlin’s husband’s company made millions from a DHS advertising campaign.
DHS Secretary Kristi Noem faced intense questioning during a Senate Judiciary Committee hearing Tuesday, and Sen. John Kennedy, R-La., specifically called out the agency for contracting a public relations firm headed by McLaughlin’s husband, Benjamin Yoho.
“I have personally reviewed the allegations against Ms. McLaughlin, and I find them to be baseless,” DHS General Counsel James Percival told Fox News Digital. “Nothing illegal or unethical occurred with respect to these contracts. Ms. McLaughlin was not involved in selecting any subcontractors.
“She is, however, a superstar in the public affairs world, so I am not surprised that she married a successful businessman whose services were attractive to these outside firms.”
Newly obtained financial statements address allegations that former Department of Homeland Security Assistant Secretary Tricia McLaughlin’s husband’s firm improperly profited from a multimillion-dollar DHS ad campaign. Lawmakers pressed Secretary Kristi Noem over the contracts during a heated Senate hearing. (Jack Gruber/USA Today)
Kennedy alleged that Yoho’s firm, The Strategy Group, “got most of the money” out of what the Louisiana Republican senator says was $220 million in “television advertisements that feature [Noem] prominently.”
“I’m sorry,” Kennedy said. “Safe America Media was a company formed 11 days before you picked them. And that the Strategy Group got most of the money. And the head of that is married to your former spokesperson.”
“It’s just hard for me to believe knowing the president as I do, that you said, ‘Mr. President, here’s some ads I’ve cut, and I’m going to spend $220 million running them,’ that he would have agreed to that,” Kennedy explained. “I don’t think Russ Vought at OMB [Office of Management and Budget] would have agreed to that.”
‘YOU SHOULD BE ASHAMED!’: PROTESTER DRAGGED FROM KRISTI NOEM’S SENATE HEARING
Senate scrutiny intensified over a DHS advertising campaign after Sen. John Kennedy, R-La., questioned whether a firm linked to McLaughlin’s husband benefited unfairly. DHS officials and the company deny any wrongdoing or multimillion-dollar profits. (Andrew Harrer/Bloomberg via Getty Images)
The Strategy Group is a conservative advertising agency for which Yoho serves as CEO.
Figures obtained by Fox News Digital show a slightly lesser total advertising expenditure of approximately $185 million, with a total of roughly $146.5 million going to a campaign called “Save America.”
However, of the total that went to “Save America,” roughly $348,000 went to production costs, while the remaining $142 million went to “media buys.”
Sources at DHS say that media buys are the cost of actually buying the ads themselves, whether purchased from social media or for a TV ad.
Kennedy also alleged that the bidding process for the contracts never took place and that Safe America Media’s recent founding was a cause for concern and collusion between McLaughlin and her husband’s business.
WATCH THE MOST VIRAL MOMENTS AS KRISTI NOEM’S HEARING GOES OFF THE RAILS
Debate over DHS’ “Save America” ad campaign intensified as senators challenged its costs and contractor ties, even as agency officials touted the initiative as a historic success in promoting self-deportation. (Graeme Sloan/Getty Images)
“Yes they did,” Noem responded during the hearing. “They went out to a competitive bid, and career officials at the department chose who would do those advertising commercials.”
The Strategy Group posted to X Tuesday that it never had a contract with the department. While it did receive several hundred thousand dollars for production costs associated with the advertising campaigns, The Strategy Group never made millions.
“The Strategy Group has never had a contract with DHS,” the post said. “We had a subcontract with Safe America [Media] for limited production services. Safe America paid us $226,137.17 total for 5 film shoots, 45 produced video advertisements and 6 produced radio advertisements.
DHS SPOKESWOMAN TRICIA MCLAUGHLIN TO LEAVE TRUMP ADMIN, SOURCE CONFIRMS
Critics raised concerns about potential conflicts of interest in a high-dollar DHS advertising effort, but department representatives say McLaughlin recused herself and that subcontracting decisions were made independently. (AP Photo/Jose Luis Magana, File)
“If you’re going to try to question our integrity, bring actual evidence — we did,” the post concluded.
Because these ads were purchased using public funds, all contract totals are publicly available.
Lauren Bis, who took up the role of assistant secretary once McLaughlin left office, told Fox News Digital Tuesday that scrutiny from Republicans and Democrats over the advertising spending was unjustified because the campaigns resulted in “the most successful ad campaign in U.S. history.”
“Sanctuary politicians are attacking this ad campaign because it has been successful in CLOSING our borders and getting more than 2.2 million illegal aliens to LEAVE the U.S.,” Bis said.
“The DHS domestic and international ad campaign was the most successful ad campaign in U.S. history. The results speak for themselves: 2.2 million illegal aliens self-deported, and we now have the most secure border in American history.”
KRISTI NOEM TO FACE SENATE GRILLING OVER MINNEAPOLIS SHOOTINGS AS DHS SHUTDOWN HITS WEEK 3
The Trump administration reaffirmed that all illegal immigrants are eligible for deportations as they focus on arresting violent criminals first. (Raquel Natalicchio/Houston Chronicle via Getty Images)
Bis also compared the cost of arresting and deporting an illegal migrant to that of the minimal cost of an illegal migrant self-deporting. The department says the advertising campaign played a key role in marketing self-deportation.
A spokesperson at DHS also told Fox News Digital that contractors decide who they hire, fulfilling the terms of a contract, not the department itself.
“By law, DHS cannot and does not determine, control or weigh in on who contractors hire or use to fulfill the terms of the contract,” a DHS spokesperson told Fox. “Those decisions are made by the contractor alone. We have only become aware of these companies because of this inquiry and did not hire those companies.”
The spokesperson also noted that McLaughlin “recused herself” from interactions with subcontractors to avoid “any perceived appearance of impropriety.”
“Upon hearing who the subcontractors were for production of the ad, Ms. McLaughlin recused herself from any interaction or engagement with any subcontractors to avoid any perceived appearance of impropriety,” the spokesperson continued. “DHS Office of Public Affairs is the program officer. Ms. McLaughlin oversees the DHS Office of Public Affairs, which is simply the vehicle for this contract.”
Department of Homeland Security Secretary Kristi Noem takes her seat as she arrives to testify during a Senate Judiciary Committee hearing Tuesday on Capitol Hill in Washington, D.C. (Jim Watson/AFP via Getty Images)
McLaughlin told Fox News Digital the criticism of her and her family by senators at the hearing is a matter of public manipulation.
CLICK HERE TO DOWNLOAD THE FOX NEWS APP
“This is yet another example of politicians intentionally trying to dupe and manipulate the public to try to manufacture division and anger,” McLaughlin told Fox News Digital. “The ad spend and contracts are a matter of public record, and the process was done by the book.
“These politicians would rather smear private citizens and American small businesses than do any basic research.”
Fox News Digital’s Alexandra Koch contributed to this report.
Politics
Senate rejects war powers measure to withdraw forces from Iran
WASHINGTON — Senate Republicans blocked a war powers resolution Wednesday designed to withdraw U.S. forces from hostilities in Iran, as the Trump administration accelerates its military campaign in a conflict that has killed hundreds, including at least six American service members.
The motion failed in a vote of 47-53.
In addition to pulling out military resources from the Middle East, the measure — introduced by Sens. Chuck Schumer (D-N.Y.), Adam Schiff (D-Calif.) and Tim Kaine (D-Va.) — would have required Congress’ explicit approval before future engagement with Iran, a power granted to the legislative branch in the Constitution.
The House, where Republicans also hold an advantage, is scheduled to weigh in on a similar measure Thursday. Even if both Democratic-led measures were to succeed, President Trump was widely expected to veto the legislation.
“We are doing very well on the war front, to put it mildly,” President Trump said at a White House event on Wednesday afternoon. The president, who has come under scrutiny for offering shifting explanations on the war’s endgame, said that if he was asked to scale the American military operation from one to 10, he would rate it a 15.
Democrats dispute that Trump possesses the authority to wage the ongoing operation in Iran without explicit congressional approval.
Acknowledging the measure was unlikely to succeed, they framed the vote as a strategy to force lawmakers to put their support for or opposition to the war on record.
“Today every senator — every single one — will pick a side,” Schumer said. “Do you stand with the American people who are exhausted with forever wars in the Middle East, or stand with Donald Trump and Pete Hegseth as they bumble us headfirst into another war?”
Senate Majority Leader John Thune (R-S.D.) and most of his Republican colleagues have maintained that the president carried out a “pre-emptive” and “defensive” strike in Iran, giving him full authority to continue unilateral military operations.
Republicans saw the vote as the “last roadblock” stopping Trump from carrying out his mission against the Islamic Republic.
“I think the president has the authority that he needs to conduct the activities and operations that are currently underway there. There are a lot of controversy and questions around the war powers act, but I think the president is acting in the best interest of the nation and our national security interests,” Thune said at a news conference.
Senators largely held to party loyalties, with the exception of Kentucky Republican Rand Paul, who broke ranks to support the measure, and Pennsylvania Democrat John Fetterman, who opposed it.
The vote comes as Defense Secretary Pete Hegseth said Wednesday that the war against Iran is “accelerating,” with American and Israeli forces expanding air operations into Iranian territory. He pointed to evidence released by U.S. Central Command of a submarine strike on an Iranian warship, and also lauded other strikes throughout the region as civilian casualties in Iran surpassed 1,000 on the fourth day of the conflict, according to rights groups.
“We’re going to continue to do well,” Trump said Wednesday. “We have the greatest military in the world by far and that was a tremendous threat to us for many years. Forty-seven years they’ve been killing our people and killing people all over the world, and we have great support.”
Republicans blocked a similar war powers vote in January after the president ordered U.S. special forces to capture and extradite Venezuelan President Nicolás Maduro in Caracas on drug trafficking charges.
GOP leaders argued that the outcome of that mission equated to a quick success in the Middle East, despite an uncertain timeline from the Department of Defense.
In the House, lawmakers will vote on a separate war powers effort Thursday. That bill is led by Rep. Ro Khanna (D-Calif.) and Rep. Thomas Massie (R-Ky.), the two lawmakers who authored the Epstein Files Transparency Act.
“Instead of sending billions overseas, we need to invest in jobs, healthcare, and education here,” Khanna said on X.
In addition to that proposal, moderate Democrats in the House have introduced a separate resolution that would give the administration a 30-day window to justify continued hostilities in the Middle East before requiring a formal declaration of war or authorization from Congress.
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