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Warner Bros. Discovery CEO David Zaslav may have been counting on getting one last round in the Netflix vs. boxing match. Paramount Skydance is said to be looking to acquire the title media company he runs. What he may not have expected was that Netflix wouldn’t even bother getting back into the ring.
After the market closed Thursday, WBD announced that Paramount Skydance’s last and best offer of $31 per share for its movie studio, streaming platform and cable networks was superior to Netflix’s previously accepted offer of $27.75 per share for the studio and streaming assets.
WBD’s statement started a countdown clock: Netflix was given four business days to match or beat Paramount’s new offer, but just an hour and ten minutes later, Netflix left the arena.
NETFLIX WITHDRAWAL FROM WARNER BROS BIDDING WAR AFTER PARAMOUNT MADE ‘SUPERIOR’ OFFER
WBD said Paramount Skydance’s last and best offer of $31 per share for its movie studio, streaming platform and cable networks was superior to Netflix’s previously accepted offer of $27.75 per share for the studio and streaming assets. Netflix co-CEO Ted Sa (Charley Gallay/Getty Images for Netflix/Getty Images)
In a joint statement, the streamer’s co-CEOs Ted Sarandos and Greg Peters said: “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 required to match Paramount Skydance’s last offer, the deal is no longer financially attractive, so we decline to match Paramount Skydance’s offer.”
Netflix was given four business days to match or beat Paramount’s new bid, but just an hour and ten minutes later, Netflix left the arena. (Mario Tama/Getty Images/Getty Images)
“We have been very disciplined buyers throughout our career. Our shareholders know us and expect us to continue to do what we do, which is to remain a disciplined buyer,” Sarandos told FBN.
Netflix shareholders have never fully embraced the merger since the official bidding process began on November 20. Since then, Netflix shares have shrunk by more than 19%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NFLX | NETFLIX INC. | 92.03 | +7.44 |
+8.80% |
| WBD | WARNER BROS. DISCOVERY INC. | 28.80 | -0.10 |
-0.35% |
| PSKY | PARAMOUNT SKYDANCE CORP. | 11.05 | -0.13 |
-1.16% |
Much of the concern focused on whether the $82.7 billion cost could shake Netflix’s solid balance sheet, and whether the deal would pass regulatory musters.
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Netflix shareholders have never fully embraced the merger since the official bidding process began on November 20. (Mario Tama/Getty Images/Getty Images)
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When WBD confirmed the superiority of Paramount’s offer on Thursday evening, Netflix shares saw a relief, rising nearly 10% in after-hours trading.
In their statement, Netflix’s co-CEOs said they agreed with shareholders.
“This transaction was always a ‘nice to have’ at the right price, and not a ‘must have’ at any price,” Sarandos and Peters said.
