Netflix abruptly announced it would not raise its offer for Warner Bros. Discovery's studio and streaming assets after Warner's board deemed Paramount Skydance's revised bid superior. Netflix stated the required price was "no longer financially attractive," calling the acquisition a 'nice to have' but not a 'must have' at any price.
Key points
- Paramount's revised offer was $31 per share for the entire company, exceeding Netflix's initial $27.75 per share offer for only the studio and streaming assets.
- Paramount's bid includes a $7 billion regulatory termination fee and $2.8 billion to cover Netflix's existing merger termination fee.
- Larry Ellison's trust is backing Paramount's bid with $45.7 billion in equity, and the deal has drawn political attention due to the Ellisons' relationship with Donald Trump.
- Following Netflix's withdrawal, its stock rose over 10% in after-hours trading, while Warner Bros. stock declined.
- Paramount's full acquisition would include cable assets like CNN, which were excluded from Netflix's initial agreement.
Why it matters
This development reshapes the Hollywood media landscape, potentially consolidating power under Paramount Skydance, which is backed by Oracle founder Larry Ellison and has political ties to Donald Trump.
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