Netflix Exits Warner Bros. Bid as Paramount Wins Deal

Netflix has formally exited the bidding process for Warner Bros. Discovery, allowing Paramount and Skydance to win the high-stakes contest with a revised offer of $31 per share.

Netflix declined to match this offer, citing valuation concerns and stating that the deal was no longer attractive. The decision to withdraw came after intense negotiations and a hostile push from Paramount and Skydance, which ultimately led Warner Bros. back to the negotiating table.

Warner Bros. CEO David Zaslav described the merger as a value-enhancing move for shareholders.

Netflix's co-CEO Ted Sarandos emphasized the company's commitment to financial discipline. The exit follows a last-ditch attempt by Netflix to keep Warner Bros. within its grasp, which included a cash and stock deal.

The competitive landscape is further complicated by potential regulatory hurdles, as antitrust scrutiny from U.S. and European authorities looms over the merger.