Netflix refused to raise its bid for Warner Bros. Discovery and dropped out of the race
Netflix refused to raise its offer in the battle for Warner Bros. Discovery and effectively exited the process. The WBD board of directors stated that the latest Paramount Skydance bid was deemed more favorable. The company gave Netflix four business days to review the terms, but the streaming service immediately announced that it would not increase the bid.
What is known
In a statement by Netflix co-CEOs Ted Sarandos and Greg Peters, it is mentioned that the company considered the acquisition of Warner Bros. as an opportunity at a reasonable cost, but not as a mandatory deal at any price.
The Paramount Skydance offer is $31 per WBD share. In addition, it includes a commitment to cover $2.8 billion in compensation that Warner Bros. Discovery would have to pay Netflix in the event of termination of the current agreement between the companies.
After Netflix's initial bid, Paramount Skydance initiated an attempt to fully acquire Warner Bros. Discovery. WBD rejected the first offer, after which the parties reviewed the terms several times. The final approval of the deal between WBD and Paramount Skydance has not yet occurred. If agreed upon, it will also require regulatory approvals.
Source: Reuters
