Netflix has withdrawn from the race to acquire Warner Bros Discovery, clearing the way for Paramount Skydance to take control of one of Hollywood’s most storied studios. Warner Bros declared Paramount’s revised offer of $31 per share in cash, increased from $30 earlier this week, as “superior” to Netflix’s proposal.
Netflix co-CEOs Ted Sarandos and Greg Peters said the deal was “no longer financially attractive” at the revised price, adding they’ve “always been disciplined.” Paramount agreed to pay $7bn if the deal collapses and cover a $2.8bn break fee Warner Bros would have owed Netflix.
In December, Warner Bros had agreed to sell its film and streaming businesses, including HBO, to Netflix for $27.75 per share, valuing the deal at about $82bn including debt. If approved, the combined entity would include HBO Max, CNN, Food Network, CBS, Nickelodeon, and Comedy Central. Regulators must now approve the Paramount deal.
Key Points:
Netflix’s disciplined exit leaves Paramount as frontrunner in high-stakes media consolidation.
The combined entity would create a streaming and broadcasting giant.
Netflix avoids overpaying, while Paramount moves closer to controlling major assets.
This signals the end of one bidding war and start of regulatory scrutiny.
The timing, with CNN’s future uncertain, adds political dimensions.
Netflix withdraws from Warner Bros bidding war, clearing path for Paramount Skydance’s $31/share offer as superior bid.
Sources: Fortune India, BBC