Netflix Has Backed Out Of Deal With Warner Bros. Giving Paramount The Opening To Merge
Image Source: CultureSlate
Paramount’s long-running pursuit of Warner Bros. Discovery appears to have paid off. After increasing its bid to $31 per share (up from $30) and having that proposal formally recognized by Warner’s board as a “superior proposal,” Netflix opted not to submit a counteroffer.
“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 streaming giant’s co-CEOs Ted Sarandos and Greg Peters wrote in a joint statement.
They added that while Netflix believed it would have been a strong steward of Warner Bros.’ iconic brands — strengthening the industry and supporting U.S. production jobs — the acquisition was “a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
Paramount CEO David Ellison, unsurprisingly, welcomed Warner’s shift, asserting that his company’s proposal delivers “superior value, certainty and speed to closing.”
The bidding war for Warner Bros. has stretched on for months, with even James Cameron weighing in. For much of that time, Netflix appeared to be the frontrunner, particularly after Warner’s board raised concerns about the financial backing behind Paramount’s earlier offer — concerns significant enough to prompt Paramount to file a lawsuit aimed at preventing Warner shareholders from approving a competing deal.
RELATED:
Even so, Paramount’s acquisition of Warner’s vast portfolio of intellectual property — including DC, Harry Potter, Looney Tunes, and Game of Thrones — as well as CNN and HBO Max, remains far from finalized.
"These two Hollywood titans have not cleared regulatory scrutiny - the California Department of Justice has an open investigation, and we intend to be vigorous in our review," wrote California Attorney General Rob Bonta in a social media post, adding that his office would critically review the deal as the entertainment industry represents a “critical sector” for California’s economy.
The deal will also require approval from the U.S. Department of Justice and European regulators.
To underscore its commitment, Paramount’s final offer reportedly includes a $7 billion reverse termination fee should the deal fail to close, in addition to covering the $2.8 billion break-up fee Warner Bros. had agreed to pay Netflix under the previous merger arrangement.
CultureSlate: Made by humans, for humans.
Please consider supporting our AI-free content via our Patreon page.
READ NEXT:
Latest News
Featured
