Well, folks, it seems like billionaire nepo baby David Ellison is probably going to get his way after all. After throwing a hissy fit because Warner Bros. Discovery agreed to sell its company to Netflix instead of the Ellison-owned Paramount Skydance, Ellison launched a months-long campaign, including a hostile takeover bid that appealed directly to WBD shareholders, to get the company to reconsider. Netflix decided to put an end to Ellison’s aggressive posturing by allowing Paramount Skydance to submit a best and final offer for WBD earlier this month—and WBD’s board has now found that new offer to be a “company superior offer.” Netflix had four days to respond and raise their bid, but, in a surprise move just hours after Paramount’s superior offer news broke, Netflix declined to raise its bid and dropped out of the running. This has left the door wide open for a Paramount Skydance-Warner Bros. Discovery merger.
Paramount Skydance’s new offer of $31 per share for WBD’s entire portfolio, including its cable channels, puts the deal at roughly $111 billion. Netflix had offered $27 a share for only Warner Bros.’ film studio and HBO Max, a deal worth approximately $83 billion. In a press statement, Netflix co-CEOs Ted Sarandos and Greg Peters said, “…this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
The Netflix deal was also facing increased regulatory scrutiny from a group of Trump-aligned attorneys general. A Paramount Skydance-Warner Bros. Discovery merger will likely have an easier path to approval, thanks to the Ellison family’s close ties to the Trump administration. Ellison’s apparent willingness to cave to Trump’s outrageous demands, as demonstrated by a $16 million lawsuit settlement Paramount paid out to Trump, is a deeply troubling sign about the integrity of the person who will soon own Batman, among many other culturally significant properties. Read Netflix’s full statement below.
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. Netflix issued the following statement in response from co-CEOs Ted Sarandos and Greg Peters:
The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. 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.
Warner Bros. is a world-class organization, and we want to thank David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the WBD Board for running a fair and rigorous process. We believe we would have been strong stewards of Warner Bros.’ iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the U.S. But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.
Netflix’s business is healthy, strong and growing organically, powered by our slate and best-in-class streaming service. This year, we’ll invest approximately $20 billion in quality films and series and will expand our entertaining offering. Consistent with our capital allocation policy, we’ll also resume our share repurchase program.
We will continue to do what we’ve done for more than 20 years as a public company: delight our members, profitably grow our business, and drive long-term shareholder value.