Netflix on Thursday withdrew from its bid to acquire Warner Bros. Discovery’s studio and streaming assets, effectively clearing the path for Paramount Skydance to finalize a deal valued at roughly $110 billion, according to statements released by both companies.
The decision marks a dramatic shift in the ongoing battle for control of a significant portion of Hollywood’s entertainment landscape. Netflix had initially agreed in December to purchase a stake in Warner Bros. Discovery for $27.75 a share, a deal worth approximately $82.7 billion. However, Paramount Skydance countered with an all-cash offer of $30 a share, later increased to $31 a share, prompting Warner Bros. Discovery’s board to deem the Paramount Skydance bid “superior.”
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” Netflix co-CEOs Ted Sarandos and Greg Peters said in a joint statement. “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.”
David Ellison, chairman and CEO of Paramount Skydance, expressed optimism about the potential merger. “By bringing together these world-class studios, our complementary streaming platforms and the extraordinary talent behind them, we will create even greater value for audiences, partners and shareholders — and we couldn’t be more excited for what’s ahead,” Ellison stated.
Warner Bros. Discovery President and CEO David Zaslav echoed this sentiment, asserting that the company aimed to “secure a transaction that maximizes the value of our iconic assets and our century-old studio while delivering as much certainty as possible for our investors.”
The outcome represents a significant win for Paramount Skydance, potentially reshaping the competitive dynamics of the streaming industry. The deal still requires regulatory approval, a process that could face scrutiny given the consolidation of media power. As of Thursday evening, neither Paramount Skydance nor Warner Bros. Discovery provided a timeline for the completion of the merger.
