By Kritika Gangwar
Netflix has lost the bid over the acquisition of Warner Bros. Discovery, which ended the months of build up suspense about the future of Warner Bros which is Hollywood’s most influential studios.
Netflix made an offer of $472 billion to acquire the huge media company and its entertainment catalogue but it became a widespread topic of discussion within the industry as it is a big shift in power for them. For months, it was the fore runner in making the deal but Paramount emerged as the winner.
The situation changed completely on Thursday as Paramount Global, backed by Skydance Media, submitted a stronger offer. Paramount proposed buying the entire company for $31 per share, valuing the deal to approximately $111 billion including debt. Warner Bros. Discover’s board said the revised bid was much higher than the earlier deal with Netflix.
Soon after the announcement was made about Paramount’s deal, Netflix confirmed it would not increase its offer. The company said matching the valuation would make the benefits unviable.
In a statement together, Netflix co-CEOs Ted Sarandos and Greg Peters said they believed the company would have been responsible custodians of Warner Bros.’ well known brands. But, they said that the deal was a strategic opportunity rather than necessity.
The withdrawal on Netflix’s end is the latest development in a months-long corporate battle over the ownership of the company. Since December, Warner Bros. Discovery supported Netflix’s $83 billion bid, which focused primarily on the acquisition of merely its studios and streaming assets. Overall, Paramount’s proposal seeks to acquire the entire company.
The transaction regarding the deal is still waiting for the approval from shareholders as well as regulators, a process that could raise concerns regarding trust. Warner Bros. Discover CEO David Zaslav thanked Netflix’s leadership for their partnership in the entire process of bidding and negotiations and said the Paramount deal, once finalized, would deliver significant value to the company.