For anyone who’s been following the soap opera’s financial battle between Netflix and Paramount Skydance over the past few months to acquire Warner Bros. Discovery, the saga may be nearing its end. Today, WBD said its board of directors has determined that Paramount Skydance’s latest offer is the superior proposal. The media organization gave Netflix four business days to match Paramount’s terms, but the streamer wasted no time in refusing to increase its bid.
‘We believe we would have been stronger stewards of Warner Bros.’ “The iconic brand, and our deal, will strengthen the entertainment industry and preserve and create more production jobs in America,” the statement from Netflix co-CEOs Ted Sarandos and Greg Peters said. “But this transaction was always a ‘good to have’ at the right price, not a ‘must have’ at any price.”
In addition to the purchase price of $31 per WBD share, Paramount’s latest offer also includes a provision that it would include a $2.8 billion termination fee that WBD would have to pay Netflix if it breached the existing merger agreement between the businesses. So instead of paying $82.7 billion to acquire the Warner Bros. portion of the operation, it appears Netflix can make do with no new content, but fill its coffers with about an extra $3 billion.
Following Netflix’s initial offer, Paramount Skydance swooped in in an attempted hostile takeover of the entire Warner Bros. Discovery business. WBD rejected it, Paramount tried again. Several additional clashes occurred between the parties involved over the past few weeks. Although WBD has yet to formally accept Paramount’s offer – which would be subject to lengthy regulatory approvals, which will surely spark more drama – it looks like the dust will settle for this chapter soon.
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