The streaming giant Netflix has officially withdrawn its bid to acquire Warner Bros. Discovery, effectively yielding the contract to Paramount Skydance. The company announced the decision in a press release on its investor relations blog.
The decision comes shortly after Paramount Skydance presented a more competitive offer to acquire the media conglomerate. Netflix opted to exit the bidding process, stating that further increasing its offer would make the acquisition no longer “financially attractive.”
Paramount is seeking to acquire the entirety of Warner Bros. Discovery in a deal valued at $108 billion. By comparison, the Netflix proposal was limited to the Warner Bros. film studio, the HBO Max streaming service, and the HBO network for a total of $82.7 billion.
NEWSROOM IN notes that Warner Bros. initially accepted Netflix’s offer late last year. Although WBD originally rejected a competing bid from Paramount, the latter continued to raise its stakes until a deal was secured.
Despite the end of the months-long bidding war, the potential merger is not yet finalized. The agreement between Warner Bros. and Paramount must still undergo a regulatory review by the California Department of Justice.
