Netflix has declined to submit an increased offer for Warner Bros. Discovery, according to sources familiar with the matter. Warner Bros.
Discovery's board announced that Paramount Skydance's new takeover bid represents a 'superior proposal'. Analysts suggest Netflix's refusal to engage in a bidding war significantly increases the likelihood that Paramount Skydance's takeover bid will be accepted. Netflix had earlier received notice from Warner Bros.
Netflix, Inc. today announced that it has declined to raise its offer for Warner Bros. Netflix had earlier received notice from Warner Bros. Discovery (WBD) that its Board of Directors has determined Paramount Skydance's (PSKY) latest proposal constitutes a 'Superior Proposal' under the terms of WBD's existing merger agreement with Netflix.
Discovery that its Board of Directors determined Paramount Skydance's latest proposal constitutes a 'Superior Proposal' under the terms of WBD's existing merger agreement with Netflix. ' Warner Bros. Discovery's decision to back the Paramount Skydance bid represents a dramatic about-turn, as for months, Warner Bros.
Discovery had publicly backed Netflix's proposal. Following an enhanced bid from Skydance-owned Paramount, which now offers $31 per share for the entire company alongside other revisions, Warner's board declared their new preference on Thursday. ' Sarandos and Peters emphasized Netflix's independent strength, saying, 'Netflix's business is healthy, strong and growing organically, powered by our slate and best-in-class streaming service.
The transaction we negotiated would have created shareholder value with a clear path to regulatory approval.
' The regulatory approvals required for the Paramount Skydance takeover and the expected timeline for closing remain unclear.