Netflix refused to buy Warner Bros; Paramount won.
Brief overview of events
In December last year, Netflix offered $82.7 million for Warner Bros Discovery. The company has now declined further increases and exited the competition in the deal. This opens the door for an “unpleasant” acquisition of Warner Bros by Paramount‑Skydance.
What the board says
The Warner Bros Discovery board evaluated Paramount‑Skydance’s offer—$31 per share—as more favorable than the Netflix deal. In response to Netflix’s refusal to raise the price, it stated that its own offer represented a “desire” to preserve and grow Warner Bros’ iconic brands rather than an “obligation at all costs.” The company emphasized that its proposal was a “pleasant bonus,” not a forced necessity.
Potential outcome
If regulators make no significant changes, Paramount‑Skydance will become the new owner of Warner Bros Discovery and pay Netflix $2.8 million for terminating the previous agreement. Paramount’s CEO David Ellison (father of Oracle’s Larry Ellison) has already been invited to testify before a Senate antitrust subcommittee.
Structured overview
| Stage | What happened | Consequences | Position |
|---|---|---|---|
| Netflix | $82.7 million for Warner Bros (December 2023) | Declined price increase; exited the race | |
| Paramount‑Skydance | $31 per share | Accepted as a more favorable offer by the board | |
| Netflix reaction | Positions its offer as a “desire” to preserve brands, not an “obligation” | Leaves open possibility for Paramount‑Skydance | |
| Possible outcome | Without regulatory obstacles – Warner Bros passes to Paramount‑Skydance; Netflix receives $2.8 million compensation |
Thus, Warner Bros Discovery is now under Paramount‑Skydance control, and Netflix ends negotiations without further offers.
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