The battle to acquire Warner Bros. Discovery has come to an end. Netflix has officially announced its withdrawal from the bidding process.
Netflix co-CEOs Ted Sarandos and Greg Peters issued a joint statement explaining that attempting to outbid the latest offer from Paramount Skydance would have made the deal financially unattractive for the streaming giant.
Warner Bros. Discovery’s board of directors recognized Paramount Skydance’s latest proposal as the “superior” offer. Netflix had four days to respond but chose to withdraw almost immediately.
Netflix had offered approximately $82.7 billion ($27.75 per share) for the film studios and streaming assets only. Paramount Skydance proposed $111 billion ($31 per share in cash) for the entire company, including its linear cable networks (such as CNN and TNT), which Netflix had no intention of acquiring.
Paramount will assume responsibility for paying the $2.8 billion termination fee that WBD now owes Netflix for breaking their previous agreement.
The future of Warner Bros.’ gaming division remains uncertain. It is known that Netflix did not place significant value on the gaming segment, considering it “relatively secondary.” Meanwhile, Paramount already owns game studios such as Skydance Interactive and Skydance New Media, raising hopes for more substantial development of WBD gaming franchises, including the Mortal Kombat, Batman: Arkham, and Hogwarts Legacy series.
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