Netflix has pulled out of the bidding process for a portion of Warner Bros. Discovery, clearing the way for Paramount Skydance to move forward with what could be a major media merger. CNBC’s Andrew Ross Sorkin broke down why he says the deal would have significant implications for Hollywood, cable and the news industry on Morning Joe, raising questions about regulatory hurdles and the shifting power dynamics in media. | Morning Joe

Warner Bros. Discovery announced Friday that it has agreed to sell its streaming and studios assets to Netflix in a deal valued at $82.7 billion, setting the stage for one of the most sweeping and consequential mergers in modern Hollywood history. @sorkinsays breaks it down. | Morning Joe