Netflix Walks Away From Warner Bros. Deal

Netflix has declined to raise its offer to buy Warner Bros. Discovery’s studio and streaming business, effectively putting Paramount in position to take over its Hollywood rival.

Even when announcing Paramount’s improved offer earlier, Warner’s board had reaffirmed its previous recommendation in favor of Netflix. (Photo: Netflix)

After Warner’s board said Skydance-owned Paramount’s offer was superior, Netflix said the higher price required to acquire Warner would make the deal “no longer financially attractive,” Wyatte Grantham-Philips reported for the Associated Press (AP).

“We believe we would have been strong stewards of Warner Bros.’ iconic brands,” Netflix co-CEOs Ted Sarandos and Greg Peters said.

“But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”

They thanked Warner leadership for backing the deal struck with Netflix in December, noting that even when announcing Paramount’s improved offer earlier Thursday, Warner’s board had reaffirmed its previous recommendation in favor of Netflix.

Paramount raised its rival bid for the entire company to $31 per share, along with other revisions.

A Warner Bros. Discovery buyout would reshape Hollywood and the broader media landscape. Unlike Netflix — which sought only Warner’s studio and streaming business for $27.75 per share — Paramount is pursuing the entire company.

That would include HBO Max, franchises such as Harry Potter, and CNN.

Paramount’s CBS has already undergone notable editorial shifts, including the installation of Free Press founder Bari Weiss at CBS News under Skydance ownership. If Paramount acquires Warner, critics warn of potential similar changes at CNN.