In a surprise announcement, Netflix said late Thursday that it would not increase its offer for Warner Bros. Discovery, effectively ending the bidding and ceding the acquisition to Paramount Skydance. Earlier Thursday, the Warner Bros. Discovery board had declared a recently increased offer from Paramount Skydance to be a “Superior Proposal,” and offered Netflix an opportunity to increase its offer.
“At the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive,” Netflix said in its announcement.
The Paramount Skydance offer was for $31 per share, plus fees if the acquisition is delayed or blocked by regulators. The company mounted a hostile bid after its offer during the initial sale process was rejected in favor of Netflix (see “Saga Continues“), then increased it over time.
The transaction will have to clear regulatory approvals before closing.
Source: ICv2
