Paramount Skydance won the battle to acquire Warner Bros Discovery after Netflix withdrew.
Consequently, Netflix shares jumped over 10% as investors welcomed the company’s renewed financial discipline.
Paramount Claims Victory
Moreover, Netflix decided not to match Paramount’s $31-per-share bid, citing valuation concerns.
“We remain disciplined; matching Paramount’s offer makes the deal financially unattractive,” Netflix explained.
With Netflix stepping aside, Warner Bros’ board will likely accept Paramount Skydance’s proposal.
Furthermore, CEO David Zaslav highlighted that the merger would expand storytelling and global distribution.
During months of negotiations, Paramount and Netflix engaged in tense boardroom battles.
Paramount launched an aggressive, hostile campaign, forcing Warner Bros back to the negotiating table.
Earlier, Warner Bros confirmed that Paramount’s $31-per-share bid beat Netflix’s $27.75 offer.
Meanwhile, Netflix advisers urged management to withdraw, arguing the deal no longer made economic sense.
Additionally, co-CEO Ted Sarandos emphasised that Netflix remained a “very disciplined buyer” throughout the process.
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Billionaire Backing
Billionaire Larry Ellison strengthened Paramount’s bid, contributing $45.7 billion in equity to support it.
Moreover, a $57.5 billion debt package is coming from a syndicate of banks.
However, regulators present significant hurdles, and antitrust scrutiny is expected in the US and Europe.
To secure certainty, Paramount increased termination fees to $7 billion against potential regulatory blocks.
Bidding War Drama
Earlier, Netflix offered $27.75 cash per share, replacing its previous mixed cash-and-stock proposal.
In response, Paramount launched a $108.4 billion hostile bid, challenging Netflix’s $72 billion attempt.
Consequently, David Ellison positioned Paramount as Netflix’s direct competitor for Warner Bros’ media empire.
Ultimately, the victory concludes a high-stakes bidding war, reshaping the race for Hollywood dominance.
