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Netflix Says No to Warner Bros. After Price War, Beltway Concerns

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Netflix Says No to Warner Bros. After Price War, Beltway Concerns

And just like that, Netflix has bowed out of its pursuit of Warner Bros. Discovery’s streaming and studio assets.

Late Thursday, the streaming colossus announced that it has decided against raising its $82.7 billion bid for a big chunk of the WBD properties, leaving Paramount Skydance with what amounts to the winning offer. Under Paramount’s latest revision to its original proposal, David Ellison’s media conglomerate will fork over some $111 billion for everything under the WBD tent, including the sports-heavy cable networks division.

Among the backers of Paramount’s $31 per share, all-cash bid are Bank of America Merrill Lynch, Citi and Apollo, which are providing a $57.5 billion debt commitment, and Ellison’s father/Oracle co-founder Larry Ellison, who has guaranteed a $45.7 billion equity commitment.

In a statement issued by co-CEOs Ted Sarandos and Greg Peters, Netflix noted that Paramount’s latest escalation made any further attempt to claim the WBD assets a bad bit of business. “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” Sarandos and Peters wrote. “However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”

Netflix went on to thank the WBD brass for “running a fair and rigorous process” before going on to characterize the assets as “a ‘nice to have’ at the right price, not a ‘must have’ at any price.”

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Meanwhile, as part of its sweetened offer, Paramount will foot the bill for the $2.8 billion termination fee WBD now owes Netflix.

Netflix’s announcement arrived just hours after Sarandos met with White House staffers to discuss his company’s bid for the WBD assets. President Donald Trump was not on hand for the meeting.

Paramount’s updated offer all but guarantees that it will walk away with the WBD spoils. While shareholders must vote to approve the deal, the amount of cash in play and the absence of a viable alternative suggest that the transaction will get the green flag.

Upon closing, the Paramount deal will bring CBS Sports and Turner Sports under one roof, thereby creating a massive rights portfolio that includes the NFL, NHL, Major League Baseball, college football, the Masters, the UFC and March Madness.

Uniting the rights to the marquee men’s college hoops tourney would effectively close the circle on the partnership forged in 2010 by former CBS Sports chairman Sean McManus and ex-Turner Sports president David Levy. After McManus determined that CBS could no longer afford to go it alone with its coverage of March Madness, the two execs hashed out a 14-year, $10.8 billion rights deal that would see the Turner networks share the burden—and the spoils—with CBS.

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Ten years ago, the two partners extended the deal through 2032, tacking on another eight years of Madness for an additional $8.8 billion.

Having been subjected to a Beltway cross-examination and at least one disapproving social media salvo by the president, Netflix may have come to the conclusion that the regulatory fix was in. Earlier this month, Sarandos was grilled by a Senate committee in an antitrust hearing that often teetered on the edge of the profoundly unserious. In one heated exchange, Sen. Josh Hawley (R-Mo.) asked why “so much of Netflix content for children promotes a transgender ideology?”

Hawley began his line of questioning by inquiring into relevant matters (labor concerns, theatrical windows), before veering into the culture war lane near the end of his allotted time. He concluded by expressing his concern that Sarandos and Netflix “don’t share my values or those of many other American parents,” a vibes-based assessment which the framers of the Sherman Act neglected to consider 136 years ago when they were going about the business of outlawing monopolistic practices.

Later in the hearing, Eric Schmitt, the junior senator from the Show Me State, told Sarandos that Netflix was responsible for creating the “wokest content in the history of the world.” Again, this was an antitrust hearing, not a meeting of a network standards and practices division.

Ellison turned down an invitation to testify at the hearing.

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Netflix’s decision to bow out of the running was made shortly after the WBD board determined that Paramount’s latest bid was the “superior” offer. Paramount’s strategy to usurp Netflix as the front runner was reinforced by an aggressive campaign to assure WBD shareholders that it has a far better shot at successfully negotiating any potential regulatory hurdles.

Misgivings about Netflix’s chances were further amplified last weekend when President Donald Trump made a dig at a Netflix board member.

Trump on Saturday took to Truth Social to demand that Netflix bounce Susan Rice from its board of directors “IMMEDIATELY, or pay the consequences.” A former Obama and Biden administration official, Rice poked the bear during a podcast appearance in which she insinuated that “it is not going to end well” for corporations and news organizations that “bent the knee” to Trump.

When asked by the BBC about Trump’s anti-Rice salvo, Sarandos tried to shrug the whole thing off, saying of the president, “He likes to do a lot of things on social media.” Sarandos went on to assert that the executive branch has no say in the matter, and while that may be accurate from a legal standpoint, the Netflix co-CEO may want to take a gander at the big pile of nothing that used to be the East Wing of the White House. Stranger things (sorry) have happened.

“This is a business deal. It’s not a political deal,” Sarandos said. “This deal is run by the Department of Justice in the U.S. and regulators throughout Europe and around the world.”

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The day after Sarandos brushed off Trump’s remarks, Paramount upped its offer to WBD to $31 a share, to be paid in all cash. This marked the 10th revision of Paramount’s original bid and included billions in additional financial incentives. Just hours after WBD acknowledged receipt of the beefed-up proposal, Ellison, the chairman and CEO of Paramount, attended the State of the Union Address as a guest of Sen. Lindsey Graham (R-SC).

The Justice Department, which just two weeks ago dismissed Gail Slater, the head of its antitrust division, is said to be looking into Paramount’s proposal. Under federal law, antitrust enforcers are at liberty to scuttle any deal that poses a threat to fair and competitive business practices.

On Wednesday, House Democrats petitioned U.S. Attorney General Pam Bondi to provide a full accounting of why the DOJ ousted Slater, noting that her ejection has left a “leadership vacuum” at a time when “the antitrust division is handling historic cases.” Signed by Jamie Raskin, the top Democrat on the House judiciary committee, and Jerry Nadler, a Democratic congressman from New York, the letter stated that Slater’s departure leaves the DOJ bereft of “any principled antitrust experts left to guard the antitrust division from [a] cascade of corruption.”

Hand-picked by Trump to lead the antitrust division, Slater was confirmed by the Senate last March by a 78-19 vote.

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Trump Says He Thinks He Will Remove Syria From US Terrorism Sponsor List

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Trump Says He Thinks He Will Remove Syria From US Terrorism Sponsor List
ANKARA, TURKEY, ⁠July ⁠8 (Reuters) – U.S. ⁠President Donald Trump on Wednesday said he thought ‌he would remove ‌Syria ⁠from ⁠the United States’ list of designated state sponsor of terrorism. “I think I will,” Trump told reporters in response ⁠to ⁠a question ⁠ahead of a meeting with Syrian …
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Trump says ‘Iran lies and cheats’ as IRGC emerges as dominant force in negotiations with US

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Trump says ‘Iran lies and cheats’ as IRGC emerges as dominant force in negotiations with US

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As President Donald Trump voiced growing frustration Wednesday with Iranian negotiators, accusing them of lying and cheating, the latest escalation has exposed an even more fundamental problem for Washington: whether the officials at the negotiating table have the power to deliver an agreement — or whether anyone in Tehran does.

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“I don’t know if we’re going to have a deal. We may just do it without a deal,” Trump said at the NATO summit in Ankara. “These people, they lie and they cheat.”

But Trump’s frustration with Iran’s negotiators is only part of the problem. Since the death of Ayatollah Ali Khamenei, it has become increasingly unclear who in Tehran has the authority to make — and enforce — an agreement.

TRUMP SAYS IRAN CEASEFIRE IS ‘OVER’ AFTER IRANIAN ATTACKS TRIGGER MASSIVE US RESPONSE

Tehran has deployed a new front on social media including an influence campaign to sway Americans and undermine President Donald Trump’s push for a nuclear deal.  (Hamed Malekpour / Middle East Images / AFP via Getty Images)

Mojtaba Khamenei succeeded his father as supreme leader after the elder Khamenei was killed in the opening U.S.-Israeli attacks on Feb. 28. But Mojtaba has not appeared publicly since the attack, and U.S. assessments cited by Reuters have described authority as dispersed among senior Revolutionary Guard commanders and powerful civilian officials.

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Parliament Speaker Mohammad Bagher Ghalibaf, a former IRGC commander who led Iran’s negotiating delegation, has emerged as one of the country’s most powerful surviving political figures.

Banafsheh Zand, an Iranian-American journalist and editor of the Iran So Far Away Substack, said power inside the Islamic Republic has fractured since the death of Ayatollah Ali Khamenei, leaving the Islamic Revolutionary Guard Corps as the country’s dominant force.

“The person who is negotiating with the U.S. is not necessarily someone who is endorsed by the others,” Zand told Fox News Digital.

She described Ghalibaf as one power center competing with figures including IRGC commander-in-chief Ahmad Vahidi, Quds Force commander Esmail Qaani and former Foreign Minister Mohammad Javad Zarif.

Vahidi controls the IRGC’s overall military structure, while Qaani oversees its external operations and relationships with Iran-aligned armed groups across the region. Zarif, by contrast, remains closely identified with the more accommodationist political camp that previously championed negotiations and sanctions relief.

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“The hardliners, in terms of their political presence, have also been pushed aside,” Zand said. “So really, it’s the IRGC. And within the IRGC, whoever signs the deal is not necessarily signing on behalf of everybody else. They’re signing on behalf of themselves.”

Her assessment reflects a central problem facing Washington: Iran’s negotiators, political institutions and military commanders may not share the same interpretation of what was agreed — or the same willingness to implement it.

US CLAWS BACK KEY CONCESSION TO IRAN AFTER FRESH ATTACKS ON COMMERCIAL SHIPS IN STRAIT OF HORMUZ

Iran’s Parliament Speaker Mohammad Bagher Qalibaf and Foreign Minister Abbas Araghchi were greeted by Pakistan Foreign Minister Ishaq Dar and Army Chief Field Marshal Gen. Asim Munir upon their arrival at Nur Khan airbase in Rawalpindi, Pakistan, on April 11, 2026. (Pakistan Ministry of Foreign Affairs/AP)

Yet Trump’s declaration does not necessarily mean diplomacy has been permanently abandoned.

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Behnam Ben Taleblu, senior director of the Iran program at the Foundation for Defense of Democracies, told Fox News Digital that the clearest evidence would be the restoration of the U.S. blockade, the introduction of additional military forces or a new round of major economic sanctions.

Otherwise, he said, Trump may continue operating in the “gray zone” between negotiations and open war while keeping his options available.

The more difficult question is why Tehran would jeopardize sanctions relief and risk overwhelming American firepower when its military has already been severely degraded.

Ben Taleblu said Iran’s leaders appear to believe escalation is essential to the survival of the Islamic Republic.

“This is a regime that is weaker, but lethal, and less capable, but more confident,” he said. Iran’s leadership believes its adversaries have vulnerable economic and military interests throughout the Gulf, he added, while the regime itself is more willing to accept destruction.

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People hold placards with an image of Iran’s new supreme leader Mojtaba Khamenei with late Iranian Supreme Leader Ayatollah Ali Khamenei, during a gathering to support Mojtaba Khamenei, amid the U.S.-Israeli conflict with Iran, in Tehran, Iran, March 9, 2026.  (Majid Asgaripour/WANA (West Asia News Agency) Via Reuters)

“Their survival and their military success and their political success runs through more, not less, escalation,” he said.

Lisa Daftari, foreign policy analyst and the editor-in-chief of The Foreign Desk, agrees the escalation is deliberate, aimed at turning regional instability into leverage.

“By targeting commercial shipping and Arab states, the regime is signaling that it can hold global energy flows and America’s regional partners hostage to extract leverage, distract from its domestic crisis, and test U.S. red lines,” Daftari told Fox News Digital.

She said Tehran is betting that Washington and its Arab partners will be unwilling to sustain another war and will ultimately back down first.

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“The regime’s core weapon is time,” Daftari said. “By escalating in the Persian Gulf and attacking ships and Arab states, they are creating rolling crises that raise the cost of confronting them while they consolidate power at home.”

Daftari argued that the strategy reflects the Islamic Republic’s longstanding character rather than a temporary response to pressure.

TRUMP ENTERS FINAL NATO SUMMIT DAY AS UKRAINE, DEFENSE SPENDING TAKE CENTER STAGE

Firefighters work in the aftermath of Iranian drone attacks, at a location given as Bahrain (Reuters)

“This regime was never designed to be reformed or softened,” she said. “What they are showing us now is exactly who they intend to remain: a hardline, revolutionary regime determined to stay in power.”

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But determining how that strategy is translated into action is more complicated. Authority in Tehran appears divided, raising questions about who is directing the escalation and whether the officials negotiating with Washington can commit the broader security establishment.

That division is already visible in the dispute over the Strait of Hormuz.

A Middle Eastern source familiar with the issue told Fox News Digital that Tehran and Washington are operating from fundamentally different readings of Clause five of the memorandum. The publicly released text says Iran will use its “best efforts” to arrange safe commercial passage through the strait without charge for 60 days, while removing military and technical obstacles and conducting demining operations. It does not expressly state that foreign vessels must obtain Iran’s approval or use routes designated by Tehran.

According to the source, Iran interprets that language as giving it responsibility — and therefore authority — to coordinate shipping and determine the routes vessels use during the interim period. Washington’s interpretation is that Iran agreed to lift its maritime blockade and fully reopen the international waterway.

When the two sides have different interpretations of a single page, how do they intend to write a treaty, the source said.

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Iran views control over passage through the Strait of Hormuz as one of its last major sources of leverage over the United States, Gulf governments and the global economy, the source said, “That is the heart of the matter.”

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The truck carrying the coffins of the slain Iranian Supreme Leader Ayatollah Ali Khamenei and members of his family makes its way through mourners during the funeral procession toward Azadi Tower in Tehran, Iran, on Monday, July 6, 2026.   (Vahid Salemi/AP)

Taken together, the experts’ assessments suggest Tehran is unlikely to face a simple choice between surrendering to Trump’s pressure and returning to negotiations. Ben Taleblu said the regime believes its survival depends on “more, not less, escalation,” while Daftari said it is deliberately “playing out the clock” by creating repeated regional crises. That raises the prospect that, even if Iranian officials return to the table, the IRGC could continue targeting commercial shipping, U.S. interests and American allies to preserve its leverage and strengthen its position inside Iran.

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From sewers to swimming sites: how Europe's cities reclaim their rivers

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As Europe braces for hotter summers, cities are reopening rivers once written off as polluted waterways. From Paris to Copenhagen, local authorities are investing in cleaner, swimmable rivers to adapt to rising temperatures and meet citizens’ needs.

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