Netflix has withdrawn from the race to buy Warner Bros Discovery, and Paramount led by David Ellison (데이비드 엘리슨) has finalised an acquisition for $111 billion, TechCrunch reported on Wednesday.
Warner Bros Discovery approved Paramount Skydance's $31-per-share offer as a "superior proposal", and Netflix decided not to counter it.
Netflix co-CEOs Ted Sarandos (테드 사란도스) and Greg Peters (그렉 피터스) said in a statement, "The deal we negotiated could have created shareholder value, but it is not financially attractive to match Paramount's latest proposal," formalising the withdrawal.
The acquisition would give Paramount key studios and news networks such as HBO, CNN, Discovery, TBS, TNT and HGTV. Ellison signalled large-scale restructuring. Controversy is also expected because the CBS News network he owns is seen as showing a leaning close to the Trump administration. Netflix offered $82.8 billion in December last year to buy Warner Bros Discovery, but Paramount countered with $108 billion and ultimately prevailed.
Netflix shares jumped 10 percent in after-hours trading, and Paramount shares rose 4.5 percent.
Chi-gyu Hwang
delight@d-today.co.kr