Netflix Withdraws Bid for Warner Bros. Discovery, Paving Way for Paramount Acquisition
Netflix has declined to increase its bid for Warner Bros. Discovery, allowing Paramount Skydance to proceed with its acquisition of the media conglomerate.
Netflix has decided not to raise its bid for Warner Bros. Discovery (WBD), effectively ceding the acquisition to Paramount Skydance.
In December, Netflix had agreed to acquire WBD's studio and streaming assets for $83 billion. However, Paramount Skydance, led by CEO David Ellison, countered with a $31 per share offer for the entire company, which WBD's board deemed a "superior proposal."
Netflix co-CEOs Ted Sarandos and Greg Peters stated, "At the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive."
With Netflix's withdrawal, Paramount Skydance is set to acquire WBD, encompassing assets such as CNN, HBO, and Warner Bros. studios. The deal is valued at approximately $111 billion and is subject to regulatory approval.
Paramount CEO David Ellison expressed satisfaction, stating, "We are pleased WBD's Board has unanimously affirmed the superior value of our offer."
The acquisition is expected to face regulatory scrutiny, with concerns about potential impacts on competition and media consolidation.