Netflix decided not to continue negotiations to acquire the media conglomerate Warner Bros. Discovery.
The reason Netflix stepped back is a better offer from Paramount Skydance, which bid $31 per share. The Hollywood Reporter reported this.
Netflix said in a statement that a possible deal with Warner Bros. was always a "nice option" at the right price, not a "necessity" at any cost.
“The transaction we negotiated would have created value for shareholders and had a clear path to regulatory approval. However, we've always maintained a disciplined approach, and at the price needed to match Paramount Skydance's latest offer, the deal is no longer financially attractive for us. So, we've decided not to match Paramount Skydance's offer,” stated Netflix CEOs Ted Sarandos and Greg Peters in a statement.
Paramount Skydance is now the leading contender to take over Warner Bros. If the acquisition goes through, brands like HBO, CNN, and film studio Paramount Pictures would be united under one structure.
“We are excited about the potential of merging Paramount Skydance and Warner Bros. Discovery and can't wait to start working together on stories that move the world,” said Warner Bros. Discovery CEO David Zaslav.
