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
Socialism goes west as DSA-backed challenger ousts longtime Democrat
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Rep. Diana DeGette, D-Colo., a 30-year incumbent, lost to a Democratic Socialists of America (DSA)-backed challenger in a high-profile primary on Tuesday evening.
Melat Kiros, a 29-year-old socialist, defeated DeGette in a Democratic primary for a deep-blue House seat anchored in Denver, according to The Associated Press, scoring a major victory for the socialist left on Tuesday evening.
The DSA had been aiming to cast DeGette’s loss as evidence of its growing momentum after a slate of socialist candidates won Democratic primaries in New York City last week.
“Today, the East Coast, next week the Mountain West,” the DSA wrote in a social media post last week.
Rep. Diana DeGette speaks during a press conference outside the U.S. Capitol building in Washington, D.C., on Jan. 10, 2024. (Samuel Corum/Getty Images)
SOCIALISTS CHEER ‘SHOCKWAVE’ PRIMARY NIGHT AS DSA-BACKED CANDIDATES WIN, ADVANCE ACROSS THE MAP
If elected in November, Kiros, who was born in Ethiopia, will likely join the ranks of the far-left group known as the Squad and become one of a handful of the House chamber’s outspoken socialists.
The millennial challenger was endorsed by Sen. Bernie Sanders, I-Vt., Rep. Alexandria Ocasio-Cortez, D-N.Y., and the anti-incumbent leftist organization Justice Democrats. Controversial socialist streamer Hasan Piker, who has said Hamas is “a thousand times better” than Israel and praised the Chinese Communist Party, also backed Kiros’ insurgent primary run.
DeGette, a member of the Congressional Progressive Caucus who supports abolishing Immigration and Customs Enforcement (ICE), sought to win a 16th House term by flexing her leftist bona fides. She argued her seniority on an influential House committee would allow her to push for Medicare-for-All legislation — a longtime priority of the party’s far-left flank.
DeGette, who was endorsed by former CPC Chairwoman Pramila Jayapal, D-Wash., also spotlighted her experience as an impeachment manager during Trump’s second impeachment trial in 2021.
Though DeGette and Kiros shared few policy disagreements, they diverged sharply over Israel and antisemitism. Kiros also sharply criticized DeGette for accepting corporate PAC contributions.
Kiros, a PhD student and lawyer, was fired from a New York firm in 2023 after publishing an open letter, arguing that pro-Palestinian student protesters calling for the elimination of Israel were not antisemitic and appearing to defend Hamas.
Melat Kiros participated in a League of Women Voters Congressional District 1 candidate forum at Montview Presbyterian Church in Denver on May 28, 2026. (RJ Sangosti/MediaNews Group/The Denver Post)
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She has also described the Oct. 7, 2023, attacks against the Jewish state as the “inevitable consequence of apartheid” and declined to characterize the deadly firebombing of protesters in Boulder last year who were urging the release of hostages held by Hamas in Gaza as antisemitic.
“I don’t know what was in the heart of the perpetrator,” Kiros told Colorado’s 9News in a recent television interview. “All I know is that he went and attacked innocent people because of what they might have believed.”
A June 2025 bipartisan resolution condemning the attack as part of a “rise in ideologically motivated attacks on Jewish individuals” won every present lawmaker’s support, except for Reps. Rashida Tlaib, D-Mich., and Thomas Massie, R-Ky., who voted present.
Kiros has also suggested the United States deserved 9/11.
“Inevitable in the sense that we destabilized a lot of the Middle East that forced people to believe that another act of violence was the only response,” Kiros told 9News when asked if she thought the terror attack was “the inevitable consequence of American foreign policy.”
“And again, just like I said before, our responsibility is to get rid of those conditions that lead to violence in the first place,” Kiros continued.
DeGette argued that Kiros’ embrace of Piker and her comments about antisemitism and 9/11 were disqualifying.
“I’m shocked and disgusted that Kiros is doubling down on excusing terrorism and the murder of innocent people,” the 30-year incumbent wrote on Facebook earlier this month.
Streamer and creator Hasan Piker speaks at a press conference during day two of Web Summit Vancouver at the Vancouver Convention Centre in Vancouver, Canada, on May 13, 2026. (Sam Barnes/Web Summit via Sportsfile via Getty Images)
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Colorado’s 1st Congressional District is the most liberal seat in the state and voted for former Vice President Kamala Harris by 56 points in 2024.
The primary fight was further scrambled by University of Colorado Regent Wanda James, also running for DeGette’s seat. Though James did not pose the same threat as Kiros, her vote share could ultimately have swayed the contest.
Politics
Newsom signs off on 100% California tax for money from Trump’s $1.8-billion ‘slush fund’
Gov. Gavin Newsom has signed off on a 100% state tax on money any Californians receive from Trump’s $1.8-billion “anti-weaponization” fund for his political allies.
Newsom unveiled his proposal in May, after Trump’s Justice Department said it would create a fund to compensate Trump’s allies who claim they have “suffered weaponization and lawfare” under Biden’s Justice Department.
The settlement fund was criticized by politicians on both sides of the aisle, including Sen. Mitch McConnell (R-Ky.), who described it as a “slush fund to pay people who assault cops.”
The fund remains in legal limbo. Earlier this month, a federal judge in Virginia extended a court-ordered block on the plan, which critics warned could be used to pay pardoned Jan. 6 rioters.
Fast-tracked into law as part of Senate Bill 122, Newsom’s plan imposes “a tax on any settlement fund payment from the federal Anti-Weaponization Fund, or any subsequent fund, settlement, or agreement, as provided, at a rate of 100%,” according to the bill text. The tax applies to all tax years between 2026 and 2030.
Newsom signed the bill Tuesday. In a statement, his office said the tax is meant to ensure that, should Trump’s fund proceed, California recipients won’t “receive favorable state treatment on those payments.”
“We believe democracy is worth defending, the rule of law matters, and public dollars should support victims—not those who attacked the very institutions that protect our freedoms,” Newsom said in the statement.
University of Southern California law professor Ariel Jurow Kleiman, an expert on tax law and policy, said that while Newsom’s tax is a “novel legal strategy,” she believes there is “no categorical legal restriction” preventing California from implementing it.
States have a “wide degree of discretion” to design their tax systems — including how they define income — so long as they do not violate their constitutions, Jurow Kleiman said.
If a California resident wanted to challenge the tax in court, they would need to show they were harmed by it to have standing to sue, according to Jurow Kleiman. That would mean receiving a payment from Trump’s settlement fund and then paying the 100% California tax. Unless the settlement fund is established and distributes payments, that scenario is unlikely.
While there have been proposals to levy a 100% tax on income above certain thresholds — Sen. Bernie Sanders (I-Vt.) in 2023 said he supports a 100% tax on income exceeding $1 billion — Jurow Kleiman said she is not aware of any governments that have adopted such a policy.
Politics
Congress eyes rare bipartisan housing win with or without Trump’s help
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The House has officially shipped a colossal bipartisan housing package to President Donald Trump, and lawmakers are hoping that, at the very least, he doesn’t veto it.
Trump was supposed to sign the 21st Century ROAD to Housing Act last week, but his last-minute decision to ghost the signing ceremony with House Speaker Mike Johnson, R-La., and Senate Majority Leader John Thune, R-S.D., put into question whether the bill was dead.
His refusal to sign the bill, which passed with overwhelmingly bipartisan support in both chambers, was to leverage the Safeguarding American Voter Eligibility (SAVE) America Act, which doesn’t currently have the votes to succeed in the Senate.
WARREN TELLS TRUMP TO ‘SIGN THE DAMN BILL’ AS BIPARTISAN HOUSING PACKAGE REMAINS STALLED IN WASHINGTON
Trump has refused to sign the 21st Century ROAD to Housing Act. (Shawn Thew/EPA/Bloomberg via Getty Images)
Trump appears to be in no hurry to sign the bill, despite Republicans who are hungry for a win in the affordability fight ahead of the midterm elections.
“It’s so unimportant … compared to the SAVE America Act,” Trump told reporters in the Oval Office on Monday. “I think the SAVE America Act is exactly what it says. It’s saving America from crooked elections.”
“Here’s what I would like to sign, much more than a bill that — big deal, it’s a yawn,” he continued. “Some people say it’s wonderful. To me, compared to the SAVE America Act, just about everything is a big yawn.”
GOP INFIGHTING OVER TRUMP’S VOTER ID BILL ERUPTS AS TOP SENATOR CALLS STRATEGY ‘FANTASY’
It’s legislation that is loaded with nearly 60 provisions from both sides of the aisle in both chambers that’s designed to make it easier for homes to be built and for younger Americans to buy their first home. It also includes a ban on hedge funds buying up housing stock that Trump pushed Congress to include during the State of the Union earlier this year.
Sen. Elizabeth Warren, D-Mass., one of the architects behind the bill in the upper chamber alongside Sen. Tim Scott, R-S.C., charged that Congress handed the bill to Trump “on a silver platter.”
“When you ask me what happens next, if he cared about the American people, he’d have already signed the damned thing, and we’d be underway,” Warren said on WCVB’s “On the Record” on Sunday.
But Trump doesn’t have to put his signature on the bill for it to become law.
IRATE REPUBLICANS ACCUSE TRUMP OF HANDING DEMOCRATS A WIN AFTER BLOWING UP HOUSING PACKAGE
The Senate advanced a massive, Trump-backed housing package geared toward lowering the costs of homes and supercharging the housing supply. Sen. Elizabeth Warren, D-Mass., pitched it as legislation to prevent America from becoming a “nation of renters.” (Jemal Countess/Getty Images for Protect Borrowers; Anna Moneymaker/Getty Images)
The Constitution grants presidents the ability to veto a bill within 10 days of it being transferred over to the White House. In that scenario, Congress could override a veto of the housing package.
It’s happened before under the Trump administration. In early 2021, Congress overrode Trump’s veto of the annual National Defense Authorization Act — a massive Pentagon funding authorization package that some House Republicans are trying to use as a vehicle to pass the SAVE America Act.
But during that 10-day period, if Trump doesn’t sign the bill, it would automatically become law. That’s unless Congress completely adjourns, in which case a “pocket veto” could happen. The Senate is currently in recess and the House is scheduled to leave town by week’s end, but neither count as a full adjournment.
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Johnson, who spent the last few days meeting with Trump at the White House about the housing bill and the SAVE America Act, said: “I hope he does sign it.”
“If he doesn’t, it’s still law,” Johnson said. “We’ll still celebrate it, but he’s trying to make a point, and I think he’s making it very effectively. And the fact that you all ask me every three steps down the hallway illustrates that he has achieved the desired objective, and that is to make SAVE America the number one thing, because if we don’t get that right, everybody’s concerned about what happens next.”
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