Streaming giant Netflix (NFLX) has given up its $82 billion U.S. takeover bid for Warner Bros. Discovery (WBD).
Netflix withdrew its purchase offer after Warner Bros. Discovery’s board of directors said that a revised takeover deal from Paramount Skydance (PSKY) was the superior bid.
In recent days, Paramount raised its hostile all-cash offer to buy the entirety of Warner Bros. to $31 U.S. a share, up from $30 U.S. per share previously.
Netflix had offered to purchase Warner Bros. Discovery’s movie studio and streaming businesses for $27.75 U.S. a share.
Last week, Netflix granted Warner Bros. seven days to reengage with Paramount Skydance, resulting in the higher offer.
Paramount is looking to buy all of Warner Bros., the film studio, streaming services, and specialty television networks that include CNN and TBS.
Netflix’s decision to walk away from the Warner Bros. acquisition effectively hands a win to Paramount Skydance and its Chief Executive Officer (CEO) David Ellison.
Investors and analysts appear to welcome news that Netflix is moving on as its stock is up 8% on news it has abandoned its efforts to acquire Warner Bros. Discovery.
“This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” said Netflix in a news release.
Prior to today (Feb. 27), NFLX stock had declined 12% over the last year to trade at $84.61 U.S. per share.
Tech Insider
