Netflix has officially stepped aside in the battle for Warner Bros Discovery, confirming it will not raise its offer to match a rival proposal.
The decision effectively clears the runway for Paramount Skydance, whose bid led by David Ellison has finally been deemed superior by the Warner Bros. Discovery board after months of relentless pursuit.
In a statement from co CEOs Ted Sarandos and Greg Peters, Netflix said it had been notified that Paramount Skydance’s latest proposal qualifies as a “Superior Proposal” under the terms of Warner Bros. Discovery’s merger agreement with Netflix.
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Rather than escalate the bidding, the streamer chose to walk away.
Netflix co CEOs Greg Peters (left) and Ted Sarandos (right), who confirmed the company will not raise its offer for Warner Bros. (images – Netflix)
Sarandos and Peters said the company remained disciplined on price and would not pursue the deal at any cost, adding that Warner Bros is a world class organisation but the numbers no longer stacked up.
“However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”
Netflix emphasised the acquisition was never essential to its strategy, describing the transaction as a “nice to have” rather than a “must have.”
The company also stressed that its core business continues to grow organically, backed by a massive content spend and ongoing expansion of its entertainment offering.
For Paramount Skydance, securing Warner Bros would dramatically expand its scale across film, television, global distribution and a potential combined Paramount+ and HBO Max streaming giant.
The combined entity would control a deep catalogue of IP and flagship brands including Harry Potter, DC, Game of Thrones, Mission: Impossible and Star Trek, plus production infrastructure spanning decades.
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From an Australian perspective, the ripple effects could be significant given Paramount’s ownership of Network 10 and local streaming platform Paramount+, alongside Warner Bros Discovery’s presence through HBO Max, production operations and subscription television channels.
Any integration of assets or strategy shifts could influence commissioning, licensing and content pipelines locally, while also raising questions about Network 10’s long term future and how Paramount would fund such a massive acquisition.
Regulatory approvals, financing arrangements and final deal terms still stand between the proposal and completion, meaning any formal takeover could take considerable time to materialise.
Netflix, meanwhile, says it will continue focusing on its existing strategy, including investing around US $20 billion in films and series this year.
With this many plot twists, backroom deals and billion dollar stakes, it already sounds like a TV drama, and one I’d definitely watch.
*This article updates
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