Paramount Skydance is now poised to take control of Warner Bros Discovery in a blockbuster deal valued at around $111 billion (£82.2bn), after Netflix withdrew from the bidding war.
Warner Bros, which went up for sale last year, confirmed Thursday that Paramount’s latest bid was “superior” to Netflix’s offer. Netflix, in turn, declined to increase its bid, calling the deal “no longer financially attractive” at the proposed price.
The acquisition, if approved, would hand Paramount ownership of Warner Bros’ iconic studio, films, and media networks, marking a major shift in Hollywood’s media landscape.
Netflix had agreed last December to acquire parts of Warner Bros in a deal worth roughly $82bn (£61bn), including debt. Paramount’s rival proposal was initially rejected but was increased earlier this week with a $1 per share boost, tipping the scales in its favour.
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” Netflix co-chief executives Ted Sarandos and Greg Peters said in a statement. “However, we’ve always been disciplined. This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
The announcement came just hours after Sarandos visited the White House on Thursday, highlighting the high stakes of the months-long negotiation.
California Attorney General Rob Bonta, however, cautioned that the potential merger is “not a done deal,” noting that the California Department of Justice has an open investigation and will conduct a thorough review. Paramount would also require approvals from the US Department of Justice and European regulators before completing the acquisition.
