Netflix Walks Away Paramount Set to Win Warner Bros. Discovery with $31 Per Share Bid.
The high-stakes battle for Warner Bros. Discovery (WBD) has reached a turning point. Netflix has officially issued a statement regarding its bid for WBD, following a superior counter-offer from Paramount-Skydance. Despite an invitation from the WBD board to sweeten its deal, Netflix has chosen to stand down, prioritizing fiscal responsibility over a costly bidding war.
The Battle of Numbers
Last week, WBD opened the floor for final offers. The competition intensified as Paramount raised its all-cash bid to $31 per share (up from $30) for the entire company. In contrast, Netflix maintained its proposal to acquire only the Warner Bros. Studios division at $27.75 per share.
The WBD board concluded that Paramount’s offer is currently superior, citing both higher valuation and a comprehensive acquisition structure.
Netflix: "The Right Price, Not Any Price"
In its official statement, Netflix defended its bid as one that creates genuine shareholder value with minimal regulatory risk. However, the streaming giant emphasized its commitment to financial discipline, refusing to engage in a "price-at-all-costs" scenario.
"Our proposal for WBD must come at the right price, not just any price," a Netflix representative stated, confirming they would not increase their offer to match Paramount’s.
Paramount’s High-Stakes Commitment
Paramount’s aggressive move comes with a significant safety net for WBD shareholders. Beyond the $31 per share cash offer, Paramount has pledged a $7 billion breakup fee if the deal fails to clear regulatory hurdles. This massive commitment was the deciding factor that led the WBD board to give Netflix a final 4-day window to reconsider a window that Netflix has now officially declined.
Netflix's focus solely on the "studio" (Warner Bros. Studios) and not the TV channels or CNN reflects its desire for intellectual property such as Harry Potter, the DC Universe, and Lord of the Rings to bolster its content library, without the burden of debt and declining traditional media businesses (legacy assets).
Netflix correctly analyzed that if they bought all of WBD, they would face intense scrutiny from antitrust authorities, as it would consolidate the number one and number two players in the streaming market. A merger between Paramount and WBD, however, might be easier to pass as a survival strategy.
It's important to remember that behind Paramount is Skydance Media (led by David Ellison), which has strong ties to Apple and focuses on cutting-edge technology. A merger with WBD would create the strongest media group in terms of "production house," directly challenging Disney.
In 2026, with interest rates still volatile, Paramount's willingness to offer an all-cash deal with a $7 billion penalty demonstrates their strong financial security. This may be due to being backed by a major technology group.
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Source: Netflix
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