Netflix co-CEO Ted Sarandos responds to criticism of the proposed acquisition of Warner Bros. Discovery by the streaming service in ‘The Claman Countdown’.
Netflix dropped its bid for Warner Bros. fall after the studio announced that Paramount’s latest offer to buy the entire company was “superior.”
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we have always been disciplined and at the price necessary to match Paramount Skydance’s last offer, the deal is no longer financially attractive, so we decline to match Paramount Skydance’s offer,” Netflix co-CEOs Ted Sarandos and Greg Peters said in a statement.
“Warner Bros. is a world-class organization and we would like to thank David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the WBD board for conducting a fair and rigorous process.
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“We believe we are strong stewards of Warner Bros. would have been.’ iconic brands and that our deal would have strengthened the entertainment industry and retained and created more manufacturing jobs in the US. But this transaction was always a nice to have at the right price, not a must have at any price.
Zaslav, CEO of Warner Bros. Discovery, said: “We are excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery and can’t wait to work together to tell the stories that move the world.”
Warner Bros. Discovery announced Thursday that Paramount’s offer to acquire the company is “superior” to the Netflix deal. (Mario Tama/Getty Images/Getty Images)
Earlier today, Warner Bros. said. Discovery that Paramount’s latest offer was “superior.”
“Warner Bros. Discovery, Inc. today announced that its board of directors, after consultation with its independent financial and legal advisors, has determined that Paramount Skydance Corporation’s previously disclosed proposal constitutes a ‘Company Superior Proposal’ as defined in WBD’s merger agreement with Netflix, Inc.” The company reports this in a press release.
Paramount’s revised offer increases WBD’s value to $31 per share, bringing the company’s valuation to $111 billion. Paramount would additionally pay the $2.8 billion termination fee that would go to Netflix if WBD pulls out of the deal.
“We are pleased that the WBD board has unanimously affirmed the superior value of our offer, which will deliver superior value, certainty and speed to closing to WBD shareholders,” Paramount CEO David Ellison said in a statement.
Ellison’s billionaire father, Larry Ellison, is personally backing Paramount’s bid, committing $45.7 billion in equity through the Ellison Trust, while Bank of America Merrill Lynch, Citi and Apollo will provide a $57.5 billion debt commitment.
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Netflix declined its bid for Warner Bros. to increase, clearing the way for Paramount to take over. (Nikos Pekiaridis/NurPhoto via Getty Images / Getty Images)
In December, Warner Bros. announced announced that it had reached a deal with Netflix to buy the Hollywood studio and HBO for $83 billion, prompting Paramount to launch a $108 billion hostile takeover bid for the entire company, including all its cable assets such as CNN, which would have been spun off into a separate company under the Netflix deal.
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The acquisition of Warner Bros. Discovery, Paramount CEO David Ellison follows his own $8 billion acquisition of Paramount last year. (Charly Tribelleau/AFP via Getty Images/Getty Images)
Both Paramount and Netflix’s bid for Warner Bros. sparked panic in the entertainment industry.
Paramount critics fear bringing two legacy studios under one company would lead to mass layoffs and raise concerns about Ellison Take over CNNwhile critics of Netflix worry about the streaming giant’s growing influence and whether it will commit to theatrical windows for movie releases to support movie theaters.
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