Netflix withdraws Warner Bros bid with Paramount now in the lead
Netflix have refused to match Paramount Skydance’s bid for Warner Bros Discovery.
The decision from Netflix was made after Paramount Skydance’s bid was deemed “superior” by the powerbrokers at Warner Bros Discovery.
Paramount Skydance’s revised bid for Warner Bros Discovery stands at $31 per share after it was increased by a dollar a share, which valued the company at a total of $111 billion, including debt.
Now, Netflix, which previously agreed an $81 billion deal for Warner Bros in December, has removed itself from the bidding process due to the increased price.
Netflix co-CEOs Ted Sarandos and Greg Peters said in a statement, “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
Their statement went on to describe Warner Bros as “a world-class organization” before thanking David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the Warner Bros Discovery board “for running a fair and rigorous process”.
The duo also admitted, “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 US. But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
Despite the deal falling through, they said “Netflix’s business is healthy, strong and growing organically,” which the pair say is “powered by our slate and best-in-class streaming service.”
They also pledged, “This year, we’ll invest approximately $20 billion in quality films and series and will expand our entertainment offering. Consistent with our capital allocation policy, we’ll also resume our share repurchase program.”
The statement concluded, “We will continue to do what we’ve done for more than 20 years as a public company: delight our members, profitably grow our business, and drive long-term shareholder value.”
While Paramount are firmly in pole position to gain control of Warner Bros Discovery, it still needs regulatory approval and is yet to be a done deal.
Never Miss A Scene
The Far Out Film Newsletter
All the latest film news from the independent voice of culture.
Straight to your inbox.