Streaming giant Netflix Inc. has officially ceased its bid to acquire Warner Bros. Discovery Inc. assets, paving the way for the deal with Paramount Skydance Corp. The acquisition of the historic Hollywood studio is valued at $111 billion, which will be one of the largest events in the media industry over the past decade. This is reported by Bloomberg, writes UNN.
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Netflix management explained its decision by an unwillingness to participate in a price war that no longer serves the interests of shareholders.
The deal we agreed to would have created value for shareholders 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.
Warner Bros received Netflix's permission for new merger talks with Paramount17.02.26, 15:32
Following the announcement, Netflix shares jumped 13%, while Warner Bros. stock fell as trading concluded.
David Ellison's new media empire and the future of Warner Bros.
Paramount Skydance's victory under David Ellison will allow the combination of resources from Paramount, Skydance Media, and Warner Bros. assets, including cable networks such as CNN and TNT.
Earlier, in December, Netflix already had a preliminary agreement for $82.7 billion, but aggressive counter-offers from Paramount forced Warner Bros. to acknowledge Ellison's terms as better. The new structure will have a significant impact on the streaming market, trying to catch up with Netflix, which currently holds the lead with a base of 325 million subscribers worldwide.