Netflix has withdrawn from the competition to acquire Warner Bros. Discovery after declining to match Paramount’s latest offer. In a shareholder letter dated Thursday, February 26, the streaming leader confirmed it will not increase its previous bid.
Key Statements from Netflix Leadership
Netflix CEOs Ted Sarandos and Greg Peters explained the decision in a joint statement. “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” they said. “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.”
Bid Comparison
Netflix’s proposal stood at $27.75 per share for HBO, HBO Max, and the Warner Bros. film and television studios in Burbank. In contrast, Paramount submitted a $31 per share cash offer on Monday, February 23, covering HBO, the Burbank studios, and cable networks such as CNN and HGTV. Paramount’s bid also included $45.7 billion in equity backed by Oracle co-founder Larry Ellison.
Given four days to submit a counteroffer, Netflix chose to step aside.
Appreciation and Future Focus
Sarandos and Peters expressed gratitude to Warner Bros. Discovery CEO David Zaslav and his team for conducting a thorough 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.,” the statement added. “But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
The executives reaffirmed their commitment to delighting subscribers, expanding the business profitably, and delivering long-term shareholder value.
