Warner Bros. fully yielded to Paramount for $110 billion
Streaming service Netflix decided not to intervene in the acquisition deal of Warner Bros. Discovery by the Paramount Skydance corporation, conceding the right to acquire the assets. According to an audio recording of an internal Warner Bros. meeting obtained by Reuters, Netflix refused to outbid Paramount's final offer of $31 per share compared to its own $27.75.
This decision led to the signing of a historic agreement on Friday morning: Warner Bros. Discovery officially accepted the acquisition offer from the combined Paramount Skydance entity. The total deal value is estimated at $110 billion, putting an end to the prolonged battle for the assets.
The stock market reacted positively to the news: Paramount shares soared 24%, while Netflix shares rose 13%. Investors viewed the streaming giant’s exit from the race as freeing it from potentially burdensome expenses.
Official representatives of the parties have so far refrained from detailed comments, but Warner Bros. Chief Revenue and Strategy Officer Bruce Campbell has already confirmed to employees that the situation resolved in this way.