Netflix Walks Away From Warner Bros Deal, Paramount Set to Take Over
Source: MacRumors
Background
Netflix was in talks to acquire Warner Bros. Discovery (WBD), which would have included Warner Bros., HBO, and HBO Max. The proposed cash‑and‑stock deal was valued at $72 billion in equity and $82.7 billion including debt.
Paramount’s Counteroffer
Paramount Skydance submitted a final offer valuing WBD at $111 billion including debt. This higher bid prompted Netflix to reassess its position.
Netflix Decision
On Thursday, Netflix co‑CEOs Ted Sarandos and Greg Peters announced:
“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.”
Market Reaction
- Netflix shares rose 8.5 % in after‑hours trading, reflecting investor relief that the company avoided overpaying for Warner Bros.
Warner Bros. Board Response
Warner’s board stated that it still recommends Netflix’s original offer but now views Paramount’s bid as “superior.” This marks the board’s first public endorsement of the suitor it initially labeled hostile when the takeover battle began in December.
Comments from Warner Bros. CEO
Warner Bros. CEO David Zaslav said Paramount’s offer “will create tremendous value,” adding that WBD is “excited about the potential of a combined Paramount Skydance and Warner Bros Discovery.”
This article first appeared on MacRumors.com.