AUSTIN, Texas (AP) — A gunman wearing clothes with an Iranian flag design and the words “Property of Allah” killed two people and wounded 14 early Sunday at a Texas bar, a law enforcement official told The Associated Press. The FBI is investigating the shooting, which erupted a day after the U.S. and Israel launched an attack on Iran, as a potential act of terrorism.

Police in Austin shot and killed the gunman, who used both a pistol and a rifle to carry out the attack, police said.

The shooting happened outside Buford’s Backyard Beer Garden just before 2 a.m. along Sixth Street, a nightlife destination filled with bars and music clubs and only a few miles (kilometers) from the University of Texas at Austin.

Nathan Comeaux, a 22-year-old senior, had spent the evening there with friends and said the bar was “full of college students, probably mostly UT kids, shoulder to shoulder, hundreds just enjoying their nights.”

The suspect drove past the bar several times before stopping and shooting from the window of his SUV at people on a patio and in front of the bar, according to Austin Police Chief Lisa Davis.

He then parked, got out with a rifle and began shooting at people walking along the street before officers rushed to the intersection and shot him, Davis said. Three of the injured were in critical condition Sunday morning, she said.

The gunman was identified as 53-year-old Ndiaga Diagne, the Department of Homeland Security said in a statement.

A student witnesses the gunfire

Comeaux had left the bar to grab pizza at a food truck across the street about 10 minutes before the first gunshots were fired. No one around the pizza truck understood what was happening, he said, with some thinking the noise was fireworks or a loud motorcycle.

Comeaux said he hid behind a bench for about a minute before getting out, and he saw police officers running toward the scene. He pulled out his phone to begin recording. That’s when more shots rang out. Comeaux said he saw the suspect turn his gun on police before officers shot him.

He said he knows someone who was shot and guessed that many other UT students do as well.

“The UT community has definitely been majorly affected by this,” he said.

FBI says attack may be terrorism

Authorities haven’t provided a clear motive for the attacks but found “indicators” on the gunman and in his vehicle leading them to look into the possibility of terrorism, said Alex Doran, the acting agent in charge of the FBI’s San Antonio office.

“It’s still too early to make a determination on that,” Doran said Sunday morning.

Diagne first entered the U.S in 2000 on a B-2 tourist visa and became a lawful permanent resident six years later after marrying a U.S. citizen, according to DHS. He became a naturalized U.S. citizen in 2013, the department said. Diagne was originally from Senegal, according to multiple people briefed on the investigation who spoke on the condition of anonymity because they were not authorized to publicly discuss the investigation.

The White House said President Donald Trump had been briefed on the shooting.

Texas officials weigh in

Texas Gov. Greg Abbott warned that the state would respond aggressively to anyone trying to “use the current conflict in the Middle East to threaten Texas.”

University of Texas at Austin President Jim Davis said on social media that some of those affected included “members of our Longhorn family.”

“Our prayers are with the victims and all those impacted,” said university President Jim Davis.

The entertainment district has a heavy police presence on weekends, and officers were able to confront the gunman within a minute of the first call for help, Davis said.

Austin Mayor Kirk Watson praised the fast response by police and rescuers.

“They definitely saved lives,” he said.

The scene the following evening was quiet in the typically bustling entertainment district amid downtown Austin’s hills and vintage homes, including that of the governor, whose residence is just blocks away.

Police had taped off several square blocks around Sixth Street, while local police and federal agents, including ATF agents were at the site, according to Austin police serving as sentries.

Unmarked law enforcement vehicles were coming and going, as were firetrucks. Bystanders and news reporters and camera crews stood at the corners outside the yellow tape, trying to catch a glimpse of the activity.

There have been at least two other high-profile shootings in Austin’s Sixth Street entertainment district within the past five years, including one in the summer of 2021 that left 14 people wounded. Although this weekend’s shooting doesn’t meet the definition of a mass killing, there have been five of those so far this year.

NEW YORK (AP) — Netflix is walking away from its offer to buy Warner Bros. Discovery’s studio and streaming business, in a stunning move that effectively puts Paramount in a position to take over its storied Hollywood rival.

On Thursday, Warner’s board announced that Skydance-owned Paramount’s latest offer to buy the entire company for $31 per share was superior to the agreement it had previously struck with Netflix. Warner gave Netflix four business days to come up with a counteroffer — but Netflix instead responded less than two hours later, declining to raise its proposal. It said the new price it would have to pay made the deal “no longer financially attractive.”

“We believe we would have been strong stewards of Warner Bros.′ iconic brands,” Netflix’s co-CEOs Ted Sarandos and Greg Peters said in a joint statement. “But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”

A Paramount buyout of Warner Bros. Discovery would reshape Hollywood and the wider media landscape. And unlike Netflix — which was only eyeing Warner’s studio and streaming business — Paramount wants the entire company. That means HBO Max, cult-favorite titles like “Harry Potter” and even CNN could soon find themselves under the same roof as Paramount’s CBS, “Top Gun” and the Paramount+ streaming service.

The prospect of such a combination, which will still need the green light from both Warner shareholders and regulators, poses both antitrust concerns and questions of political influence.

Netflix’s decision to walk away on Thursday marks the latest development in a monthslong, messy corporate battle over Warner’s future. Sarandos and Peters thanked Warner’s leadership despite the final outcome.

Warner had repeatedly backed the deal it struck with Netflix since December right up until Thursday evening, when its board continued to recommend Netflix even while calling Paramount’s bid valued at about $111 billion including debt “superior.” Netflix had previously put a $27.75 per share offer on the table for Warner’s studio and streaming business, totaling nearly $83 billion including debt.

In a statement Thursday night, CEO David Zaslav said Netflix executives had been “extraordinary partners” and that he wished them “well in the future.”

After months of a heated back and forth amid Paramount’s hostile campaign to take over Warner without the board’s blessing, Warner also changed its tune about the remaining prospective buyer.

Warner’s board hasn’t officially adopted Paramount’s merger agreement yet, but once it does, Zaslav said it “will create tremendous value.” He added that the company was “excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery.”

Paramount did not immediately respond to requests for further comment. But CEO David Ellison earlier applauded Warner’s board affirming “the superior value of our offer.”

A Paramount-Warner combo would combine two of Hollywood’s five legacy studios that remain today, in addition to their theatrical channels. Beyond “Harry Potter,” Warner movies like “Superman,” “Barbie,” and “One Battle After Another” — as well as hit TV series like “The White Lotus” and “Succession” — would join Paramount’s content library.

Paramount’s lineup of titles include “Top Gun,” “Titanic” and “The Godfather.” And beyond CBS, it owns networks like MTV and Nickelodeon, as well as the Paramount+ streaming service.

A merger between the two companies would put CNN under the same roof as CBS, which has already seen significant editorial shifts under new Skydance ownership. Paramount took steps to appeal to more conservative viewers in its news operations, notably with the installation of Free Press founder Bari Weiss as editor-in-chief of CBS News. And if the company’s takeover bid of Warner is successful, critics warn similar shifts could happen CNN, a network that has long attracted ire from Trump.

“Any concerns about Netflix owning Warner Bros. are only heightened by the prospect of Paramount owning all of WBD. But it might not even matter,” Mike Proulx, vice president and research director at Forrester, a market research company, said in an email. “Politics are playing an outsized role in this deal, and they’ve been on Paramount’s side from the get‑go.”

President Donald Trump has a close relationship with the billionaire Oracle founder Larry Ellison, the father of Paramount’s CEO David Ellison who is heavily backing Paramount’s bid to buy Warner. And Paramount’s aggressive push to acquire Warner arrived just months after Skydance closed its own buyout of Paramount in a contentious merger approved just weeks after the company agreed to pay the president $16 million to settle a lawsuit over editing at Paramount’s “60 Minutes” program on CBS.

Still, Trump has continued to publicly lash out at Paramount over editorial decisions at CBS’ “60 Minutes.” And while the president previously made unprecedented suggestions about his involvement in seeing a Warner deal through, he’s since walked back those statements and maintained that regulatory approval will be up to the Justice Department.

Still, top Democratic lawmakers have sounded the alarm about the Republican president’s ties to companies like Paramount and potential consequences of growing corporate power.

“A handful of Trump-aligned billionaires are trying to seize control of what you watch and charge you whatever price they want,” Democratic Sen. Elizabeth Warren, a longtime antitrust hawk, said in a statement Thursday night. She also called a potential Paramount-Warner combo an “antitrust disaster.”

Executives at Paramount have argued that merging with Warner will allow it to compete with bigger rivals particularly in the streaming space, and bring larger content libraries for its customers. But Warren and other critics say such a merger threatens higher prices, and that a Warner takeover would only further consolidate power in an industry already run by just a few major players. Some trade groups also warn that could mean job losses and less diversity in filmmaking.

When Netflix was still in the running, one of its key arguments against a Warner-Paramount tie-up was that it would combine two very similar companies: two legacy studios, two theatrical channels and two major news networks. The streaming giant said that posed a higher risk for job losses and other competition concerns.

In contrast, executives from both Netflix and Warner argued at a Senate antitrust hearing earlier this month that Netflix doesn’t have the same studios and film distribution that Warner does. That was “one of the reasons that the Netflix offer appeals to us so much,” Bruce Campbell, Warner’s chief revenue and strategy officer, told senators on Feb. 3 — noting that the company believed Netflix would not only keep Warner’s operations intact, but “invest in continued production.”

How regulators will respond to a Warner-Paramount deal remains to be seen. The U.S. Department of Justice has already initiated reviews, and other countries are expected to do so, too.

Warner shareholders will have to be convinced, too. Beyond a higher price, Paramount has also tried to entice them by pledging to move up a previously-promised “ticking fee.” The company initially said it would pay 25 cents per share for every quarter the deal drags on past the end of the year. Now it’s agreed to pay that amount if the deal doesn’t go through by the end of September. It also agreed to a regulatory termination fee of $7 billion.

But Paramount is taking on billions of dollars in debt to finance its offer — something critics have warned could only increase to the likelihood of potential job losses and other restructuring down the road. Foreign sovereign wealth funds have also provided equity for the offer, drawing added scrutiny.