Netflix cedes Warner Bros. Discovery to Paramount: "No longer financially attractive"

"The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, 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 the Paramount Skydance bid."

"The WBD merger was always a 'nice to have' at the right price, not a 'must have' at any price."

"Once our board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders. We are excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery and can't wait to get started working together telling the stories that move the world."

Warner Bros. Discovery's board declared Paramount's revised acquisition offer superior, giving Netflix four business days to match it. Netflix declined to proceed, stating the transaction no longer represented financial value at the required price. Netflix co-CEOs emphasized the company maintains disciplined acquisition standards, treating the merger as desirable only at appropriate valuations, not mandatory regardless of cost. Following Netflix's withdrawal announcement, Netflix stock rose over 10 percent in after-hours trading while Paramount shares increased 5 percent. WBD President David Zaslav expressed enthusiasm about the potential combined Paramount-Skydance and Warner Bros. Discovery entity.

Read at Ars Technica