Netflix cedes Warner Bros. Discovery to Paramount: “No longer financially attractive”
On Thursday, WBD’s board deemed Paramount’s revamped offer “superior,” giving Netflix four business days to match it. But on the same day, Netflix, which had recently emphasized its willingness to abandon mergers that it considered too costly, declared that it would no longer pursue this acquisition.
A statement from Netflix co-CEOs Ted Sarandos and Greg Peters released last night said:
The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we have always been disciplined and, at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we decline to match Paramount Skydance’s offer.
The CEOs added that the WBD merger “has always been a ‘nice to have’ at the right price, not a ‘must have’ at any price.” »
Shares of Netflix and Paramount have continued to decline since Netflix announced its proposed merger. Following yesterday’s announcement, Netflix shares rose more than 10% after hours and Paramount shares rose 5%.
In a statement cited yesterday by The Hollywood Reporter, WBD Chairman and CEO David Zaslav said, “Once our board votes to adopt the merger agreement with Paramount, it will create tremendous value for our shareholders. We are excited about the potential of a combination of Paramount Skydance and Warner Bros. Discovery and can’t wait to begin working together to tell the stories that move the world.”
