Home / Business and Economy / Netflix Walks Away from Warner Bros. Deal
Netflix Walks Away from Warner Bros. Deal
27 Feb
Summary
- Netflix will not increase its acquisition offer for Warner Bros. Discovery.
- The streamer deemed the required price financially unattractive.
- Warner Bros. Discovery's board found Paramount Skydance's offer superior.
Netflix announced on Thursday that it has declined to raise its offer to acquire Warner Bros. Discovery (WBD). The streaming giant had previously received notification from WBD that its board considered Paramount Skydance's latest proposal to be a 'Superior Proposal' under their existing merger agreement.
In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters explained their decision. They indicated that the transaction they negotiated would have generated shareholder value with a clear path to regulatory approval. However, matching Paramount Skydance's increased bid was no longer financially attractive, leading Netflix to withdraw.
The co-CEOs acknowledged Warner Bros. as a world-class organization and thanked WBD's leadership for a fair process. They believe their stewardship would have strengthened the entertainment industry and created production jobs in the U.S. Ultimately, Netflix characterized the deal as a 'nice to have' at the right price, but not a 'must have' at any cost.
