Netflix bows out: Paramount set to buy Warner Bros for record sum
Netflix no longer pursuing Warner Bros. (photo: Getty Images)
The world’s largest streaming service, Netflix, has officially walked away from negotiations to acquire Warner Bros. Discovery (WBD). This decision clears the way for the media giant to be taken over by the Paramount Skydance consortium, according to a press release published on Netflix’s official website.
Why Netflix is no longer pursuing Warner Bros.
Earlier, Netflix had planned to close a deal worth $82.7 billion, acquiring Warner Bros., HBO, and HBO Max.
However, after Paramount Skydance raised the final offer to $111 billion, Netflix decided not to engage in a price war.
Netflix co-CEOs Ted Sarandos and Greg Peters stated that the company always maintains financial discipline.
“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,” the Netflix executives said.
“We believe we would have been strong stewards of Warner Bros.' iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the U.S. But this transaction was always a 'nice to have' at the right price, not a 'must have' at any price,” the company added.
Paramount overtakes Netflix (photo: Getty Images)
New media giant and Warner Bros. position
The Warner Bros. board of directors had previously supported Netflix’s offer, but now called Paramount’s move superior.
WBD CEO David Zaslav expressed enthusiasm about the prospect of merging with Paramount Skydance.
If the deal succeeds, Paramount owner Larry Ellison would gain control not only over Warner Bros. and HBO, but also over news channels CNN and CBS News.
Despite the board’s support, the deal still requires regulatory approval, leaving the outcome of this media battle uncertain.
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