Netflix backs out of Warner Bros. Discovery bidding war

For all those who have followed the soap opera unfolding in recent months between Netflix and Paramount Skydance in their financial situation to acquire Warner Bros. Discovery, the saga may be coming to an end. Today, WBD said its board of directors determined that Paramount Skydance’s latest offer was the best. The media group gave Netflix four business days to meet Paramount’s terms, but the streamer wasted no time in refusing to increase its own offer.

“We believe we would have been strong stewards of Warner Bros.” iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the United States,” said Netflix co-CEOs Ted Sarandos and Greg Peters. “But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”

In addition to the purchase price of $31 per WBD share, Paramount’s latest offer also included a provision that it would cover the $2.8 billion termination fee that WBD would owe Netflix for dissolving the existing merger agreement between the companies. So, rather than paying $82.7 billion to acquire the Warner Bros. part. of the operation, it seems that Netflix could leave without new content but filling its coffers with almost 3 billion additional dollars.

After Netflix’s initial offer, Paramount Skydance launched a hostile takeover attempt of the entire Warner Bros. business. Discovery. WBD rejected it, Paramount tried again. Several other salvos between the parties involved have taken place in recent weeks. Although WBD has yet to formally accept Paramount’s offer – which will be subject to lengthy regulatory approvals that are sure to spark more drama – it appears the dust will soon settle on this chapter.