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Netflix has decided not to raise its offer for Warner Bros after Warner Bros Discovery determined that Paramount Skydance’s revised bid qualifies as a “Superior Proposal” under the terms of its existing merger agreement with the streaming company.
In a joint statement, Netflix co-chief executive officers Ted Sarandos and Greg Peters confirmed that the company would not match the updated offer.
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we have always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid,” the statement said.
The executives described Warner Bros as a “world-class organisation” and thanked David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the Warner Bros Discovery board for conducting what they called a fair and rigorous process.
Netflix added that it would have been a strong steward of Warner Bros’ iconic brands and said the proposed transaction could have strengthened the broader entertainment industry while preserving and creating production jobs in the United States. However, the company emphasised that the deal was “a nice to have at the right price, not a must have at any price.”
The streaming platform said its core business remains healthy and continues to grow organically, driven by its content pipeline and global subscriber base. Netflix plans to invest approximately $20 billion this year in films and series as it expands its entertainment offering.
