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In a sharp twist in this unfolding Hollywood deal battle, Netflix walked away from its deal with Warner Bros. Discovery. The company’s stock surged following the announcement.
Here’s the breakdown: earlier this week, Paramount raised its offer to buy Warner Bros. Discovery to $31 per share in cash, up from $30 earlier. This is one of several revised bids since Netflix first announced its own offer at $27.75 per share.
Netflix then gave WBD a seven-day window to reopen talks with Paramount, which ultimately led to this increased offer. Paramount’s bid is for the entire company, including major TV networks like CNN, TBS and TNT.
Once Paramount improved its offer, Netflix had four business days to revise its own proposal.
Instead of increasing its bid, Netflix decided to walk away, bringing an end to a long back-and-forth takeover battle where both sides had repeatedly raised their offers.
The response: co-CEOs Ted Sarandos and Greg Peters said the deal made strategic sense, but matching the higher price no longer made financial sense.
Looking ahead: now, the path looks clear for Paramount. It has promised to pay a $7 billion fee if regulators block the deal and will also cover the $2.8 billion fee WBD would have owed Netflix, making its offer stronger and more secure.
