Entertainment giant Netflix announced this Thursday (26) that it had withdrawn from the dispute for the acquisition of Warner Bros. Discovery (WBD) following the offer presented this week by acquisition rival Paramount Skydance (PSKY). Paramount offered a total of almost US$95 billion (approximately R$500 billion).
Netflix “refused to increase its offer for Warner Bros.” after receiving notification from WBD “that its board of directors has determined that PSKY’s latest proposal constitutes a ‘superior offer’ under the terms of the existing merger agreement” between the two companies, declared the company co-led by Ted Sarandos in a statement cited by the Efe agency.
While the transaction negotiated last December between Netflix and WBD “driving shareholder value with a clear path to regulatory approval,” the price needed to match PSKY’s latest offer “is no longer financially attractive,” the entertainment giant added.
The entertainment giant’s main rival in the dispute to acquire Paramount presented a new offer this week, valued at US$31 per share, in an attempt to compete with the sales agreement that the legendary studio has with Netflix.
PSKY’s revised offer includes a cash payment of $31 per share, up from $30 previously proposed, as well as an additional payment of $0.25 per share per quarter beginning September 30, 2026, if the deal is not completed by then.
PSKY also commits to pay the $2.8 billion that WBD would have to pay Netflix for breach of contract and will provide additional capital if necessary to meet creditor banks’ solvency requirements.
Paramount’s new offer was a response to Netflix’s proposal last December, part of a preliminary agreement to acquire WBD’s studios and streaming businesses for $27.75 per share, valuing those assets at approximately $72 billion, with a total enterprise value of around $82.7 billion.
