Paramount Skydance has emerged victorious in the months-long bidding war for Warner Bros. Discovery after Netflix confirmed Thursday that it would not raise its offer.
The streaming giant declined to match Paramount Skydance’s revised bid after WBD’s board labeled the new proposal a “superior” one earlier in the day. That designation opened a four-business-day window for Netflix to counter, but by evening the company opted to step aside.
“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,” Netflix Co-CEOs Ted Sarandos and Greg Peters said in a joint statement. “This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
Paramount Skydance, led by David Ellison, offered $31 per share in cash for WBD, along with a 25-cent quarterly “ticking fee” per share for any delays beyond September 30. The proposal also includes a $7 billion regulatory breakup fee and covers the $2.8 billion penalty WBD would owe Netflix if it terminates the existing agreement.
“We are pleased WBD’s Board has unanimously affirmed the superior value of our offer, which delivers to WBD shareholders superior value, certainty, and speed to closing,” Ellison said before Netflix formally withdrew from the bidding.
Netflix’s bid had valued Warner Bros. Discovery at $27.75 per share in an all-cash transaction. The company had reportedly faced scrutiny from antitrust regulators in both the United States and Europe, prompting Sarandos to personally lobby officials in Washington and major European capitals in support of the deal.
Paramount’s proposal also benefits from financial backing tied to Larry Ellison, the Oracle founder and father of David Ellison, who has pledged additional equity support to ensure lender confidence.
Despite acknowledging Paramount Skydance’s stronger offer, Warner Bros. Discovery, led by CEO David Zaslav, said earlier that the Netflix merger agreement technically remains in effect and that its board had not yet formally withdrawn its recommendation in favor of the Netflix transaction.
If completed, a Paramount Skydance-Warner Bros. Discovery combination — including assets such as HBO Max — would significantly reshape the streaming landscape and position the merged entity as a formidable rival to tech-driven competitors like Amazon and Apple in the intensifying battle for global subscribers.
The post Paramount Skydance Wins Warner Bros. Discovery Bidding War As Netflix Bows Out appeared first on Real News Now.
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