Netflix has withdrawn its proposal to acquire Warner Bros Discovery, paving the way for Paramount Skydance to win a months-long battle for one of Hollywood's most storied studios in a deal worth approximately $111bn.

Warner Bros, which put itself up for sale last year, said on Thursday that Paramount's latest bid was "superior" to Netflix's offer. Netflix declined to raise its bid.

Netflix executives stated they chose not to match Paramount's offer as "the deal is no longer financially attractive" at that price.

The acquisition would grant the buyer control of the iconic studio along with its film library and media networks—a move that could significantly reshape the media landscape.

California Attorney General Rob Bonta emphasized on Thursday evening that the potential merger "is not a done deal." He wrote in a social media post: "These two Hollywood titans have not cleared regulatory scrutiny—the California Department of Justice has an open investigation, and we intend to be vigorous in our review."

Paramount will require approval from the US Department of Justice as well as European regulators.

If Paramount's deal is approved, the company would integrate Warner Bros' HBO Max streaming subscribers into its portfolio and take ownership of CNN, Food Network, and a range of sports assets.

Source: www.bbc.com