Deadline reports that Netflix has surrendered in its bid war for Warner Bros., giving Paramount the upper hand. The Tudum streamer released a statement, echoing its reasoning for falling back in pursuit of the legendary film and TV studio. View the full statement below.
Netflix, Inc. today announced that it has declined to raise its offer for Warner Bros. Netflix had earlier received notice from Warner Bros. Discovery (WBD) that its Board of Directors has determined Paramount Skydance’s (PSKY) latest proposal constitutes a “Superior Proposal” under the terms of WBD’s existing merger agreement with Netflix. Netflix issued the following statement in response from co-CEOs Ted Sarandos and Greg Peters:
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.
Warner Bros. is a world-class organization, and we want to thank David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the WBD Board for running a fair and rigorous process. 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 U.S. But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.
Netflix’s business is healthy, strong and growing organically, powered by our slate and best-in-class streaming service. This year, we’ll invest approximately $20 billion in quality films and series and will expand our entertaining offering. Consistent with our capital allocation policy, we’ll also resume our share repurchase program.
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.
This concludes a months-long battle between Paramount and Netflix for the David Zaslav-led company, that owns HBO, CNN, TNT, DC Studios, TLC and HGTV. Paramount initiated a bid back in November, along with Netflix and third contender, Comcast. Within month, Ted Sarandos’s streamer appeared as the front winner, offering a whopping $82.7 billion for WBD. The purchase would have included Warner’s TV and streaming assets, leaving the film studio alone.
David Ellison called foul, claiming the potential sale was unfair. He proceeded with two additional offers to the WBD shareholders, each one denied. As he made noise to prevent this merger, many other voices cautioned against the deal. The WGA spoke out against the possible monopoly, and Senator Elizabeth Warren publicly opposed the deal. Across the pond, UK lawmakers also called foul, seeing potential antitrust violations if Netflix proceeded with buying WBD.
Paramount recently submitted a final bid, promising more incentives for WBD shareholders. They previously offered whopping $30 per share, which included a $0.25-per-share “ticking fee” that would be accrued by investors for each quarter the deal remained opened past Dec. 31, 2026. They also offered to cover Netflix’s termination fee of $2 billion. Netflix had previously tapped out at $27 per share, in an all-cash bid for the prominent studio.
A potential Paramount-WBD merger would still need to be approved by Congress, which could take a year. Ellison previously had Skydance’s acquisition of CBS’s parent company approved with favor from his good friend, President Trump.