Home / Business and Economy / Paramount Wins Warner Bros. Discovery Bidding War
Paramount Wins Warner Bros. Discovery Bidding War
27 Feb
Summary
- Paramount Skydance's $31 per share offer was accepted by WBD.
- Netflix declined to raise its $27.75 per share bid.
- The deal includes CNN, TBS, and TBT networks.
Warner Bros. Discovery's (WBD) board has accepted Paramount Skydance's revised offer of $31 per share, all cash, in a decisive turn of events that concludes the bidding battle with Netflix. This superior offer outpaced Netflix's initial bid of $27.75 per share for WBD's studio and streaming assets.
The approved proposal from Paramount Skydance includes WBD's entire portfolio, encompassing well-known pay-TV networks such as CNN, TBS, and TBT. To mitigate potential regulatory obstacles, the deal also features a substantial $7 billion breakup fee.
Netflix, after being granted a waiver to reconsider its offer, ultimately decided against revising its bid. Co-CEOs Ted Sarandos and Greg Peters stated that matching Paramount Skydance's price was no longer financially appealing, despite recognizing the potential synergy with WBD's iconic brands.
WBD CEO David Zaslav expressed gratitude towards Netflix for their partnership throughout the process and anticipates that the merger agreement will generate significant shareholder value. He anticipates the integration will usher in a new era of collaboration between Paramount Skydance and WBD.
Following the announcement, market reactions were swift: Netflix shares saw a 10% surge in extended trading, while Paramount gained 5%. WBD's stock experienced a 2% decline. Analysts interpreted Netflix's decision as financial discipline, while Paramount's aggressive bid highlights its strategic consolidation efforts in the media sector.
