Netflix has abandoned its planned acquisition of Warner Bros. Discovery’s studio and streaming assets, effectively clearing the path for Paramount Global to acquire the media giant, according to reports Friday.
The decision marks a stunning reversal in a deal initially valued at $82 billion, announced late last year. Netflix co-CEOs Ted Sarandos and Greg Peters stated the company declined to increase its offer to match a revised bid from Paramount, deeming the transaction a “nice to have” rather than a “must have.”
“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 US,” Sarandos and Peters said in a statement reported by The Hollywood Reporter.
The move follows a period of intense negotiation and legal maneuvering. Paramount had previously launched a lawsuit against Warner Bros. Discovery in an attempt to gain access to information needed to formulate a competitive offer. Warner Bros. Discovery then engaged with Paramount, granting a one-week period earlier this month to reopen negotiations, ultimately leading the Warner Bros. Board to favor Paramount’s revised bid.
According to a report from CNBC, the Warner Bros. Discovery board determined Paramount’s offer to be superior. The deal, which includes the studio and streaming business, now awaits stockholder and regulatory approval before it can be finalized.
The potential acquisition by Paramount is being driven, in part, by producer David Ellison, according to the Associated Press. The outcome represents a significant shift in the landscape of major media companies, with Paramount poised to take ownership of Warner Bros. Discovery’s extensive portfolio of intellectual property and streaming services.
