Why did Netflix withdraw from the Warner Bros. acquisition?

Netflix withdrew because they decided not to match Paramount's raised bid of $31 per share, finding the required price financially unattractive for the deal.

What was Netflix's initial goal with the Warner Bros. offer?

Netflix's initial negotiation aimed to create shareholder value and achieve a clear path to regulatory approval for the transaction.

Did Netflix consider the deal financially attractive?

No, Netflix's co-CEOs stated that at the price required to match the latest offer, the deal was no longer financially attractive.

Home / Business and Economy / Netflix Quits Warner Bros. Buyout Race

Netflix Quits Warner Bros. Buyout Race

27 Feb

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Summary

Netflix declined to match Paramount's higher offer for Warner Bros.
The co-CEOs cited financial unattractiveness at the required price.
Netflix maintained discipline, deeming the deal no longer viable.

Netflix announced Thursday its withdrawal from the acquisition race for Warner Bros. The streaming giant revealed it would not increase its bid to match Paramount's latest offer of $31 per share, which had been deemed a superior offer by the Warner Bros. Discovery board. Co-CEOs Ted Sarandos and Greg Peters issued a joint statement explaining their decision.

They emphasized that while their initial negotiation aimed to create shareholder value and ensure regulatory approval, the escalating price point ultimately rendered the deal financially unappealing. Netflix cited its commitment to disciplined financial practices as the reason for declining to match the revised Paramount Skydance bid.