"Netflix essentially offered $82.7 billion for just the Warner Bros. Discovery film and TV studios arm and HBO Max, and Paramount-Skydance, after its best and final bid, is going to wind up paying $111 billion in cash to buy all of WBD. Netflix had four days to decide if it wanted to match that offer, and it didn't even take four hours for it to decide to walk away."
"With NFLX's stock price falling as shareholders questioned the value of buying a legacy studio (its stock shot back up about 10 percent at the news of Netflix stepping away), pressure had been mounting on Netflix in the days since the merger was announced back in December. In fact, it said that though WBD was a "nice to have," it never considered WBD a "must have at any price.""
"While plenty around town were scared off at the idea of a disrupting company like Netflix taking over a studio that has 100 years of history, not unlike Amazon buying MGM, Netflix was vowing to make itself, Warner Bros., HBO, and Warner Bros. Television as distinct entities and keep things largely as they've been."
Netflix decided to exit its proposed acquisition of Warner Bros. Discovery's film, TV studios, and HBO Max operations after Paramount-Skydance submitted a higher bid of $111 billion in cash. Netflix's initial offer valued the assets at $82.7 billion, but the company declined to match the competing bid within four hours of the announcement. Netflix characterized WBD as a "nice to have" rather than essential at any price. The decision came amid shareholder concerns about the acquisition's value and Netflix's stock price decline. Netflix had committed to maintaining WBD's legacy studio structure and theatrical operations. This outcome represents a significant shift in Hollywood consolidation, with Paramount-Skydance now positioned to absorb the entire Warner Bros. Discovery entity.
#media-mergers--acquisitions #netflix #paramount-skydance #warner-bros-discovery #hollywood-consolidation
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