Netflix Withdraws Bid for Warner Bros. Discovery Amid Paramount's Higher Offer

Netflix has announced its decision not to raise its bid for Warner Bros. Discovery (WBD), effectively allowing Paramount Skydance to advance with its $31-per-share offer.

In a statement, Netflix co-CEOs Ted Sarandos and Greg Peters said, "The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. 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."

Paramount Skydance's proposal includes acquiring the entirety of WBD, encompassing its studios, HBO, CNN, and other assets. The offer also features a $7 billion regulatory termination fee and a $2.8 billion payment to cover the termination fee owed to Netflix.

The proposed merger has raised antitrust and political concerns, particularly due to Paramount's ties to former President Donald Trump. Critics, including Senator Elizabeth Warren, argue that the consolidation could lead to reduced competition and job losses. Regulatory and shareholder approvals are still pending, with scrutiny over corporate influence and debt financing remaining intense.