While Warner Bros. Discovery’s revenue fell six percent in its fourth quarter (losing $252 million), Paramount emerged as the winner in the bid for WBD with contending Netflix pulling the plug on the deal.
Netflix yesterday declined to raise its offer for Warner Bros. Discovery after receiving notice that the WBD Board of Directors had determined that Paramount Skydance’s latest proposal constitutes a “superior proposal” under the terms of the existing merger agreement with Netflix.
Paramount’s new offer of $31 per share in cash for a total of $111 billion is for the entirety of WBD, including its linear cable channels. The WBD Board had given the streaming platform four business days to improve it.
Netflix co-CEOs Ted Sarandos and Greg Peters said in a statement that the transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price and that they’ll continue to do what they’ve done for more than 20 years as a public company: delight members and profitably grow the company’s business.
Netflix will be paid a $2.8 billion termination fee by Paramount.
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