Paramount takes lead in Warner Bros. Discovery bid after Netflix withdraws
In a dramatic and unexpected twist, Paramount has emerged as the frontrunner to acquire Warner Bros. Discovery after Netflix withdrew from the bidding process.
Until late Thursday, the world’s largest streaming service had appeared to be in pole position. Netflix had tabled an offer of $27.75 per share for Warner’s studio and HBO Max streaming businesses, valuing the divisions at almost $83bn (£61.6bn), including debt. The proposal had been widely viewed as the deal to beat.
However, in a surprise late-night statement, Warner’s board signalled a decisive shift. While it continued to recommend Netflix’s offer, it revealed that it now regarded Paramount’s proposal as “superior” — marking its first public indication of support for the bidder initially described as hostile when the takeover saga began in December.
The reaction was swift. Within hours, Netflix announced it was pulling out of the process, stating that the transaction was “no longer financially attractive”. Co-chief executives Ted Sarandos and Greg Peters said: “We believe we would have been strong stewards of Warner Bros’ iconic brands. But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
Related to this
.
.
Paramount Skydance preparing bid to acquire Warner Bros Discovery
.
‘Jolly LLB 3’ premieres on Netflix
The withdrawal stunned industry observers, who had largely expected Netflix to press ahead. Instead, Paramount now finds itself in the driving seat in what could become one of the most consequential media mergers in recent years.
Even so, the outcome is far from certain. Paramount may have momentum, but securing Warner Bros. Discovery will require navigating complex negotiations and potential regulatory scrutiny. For now, what seemed a near-certain victory for Netflix has turned into a striking reversal and a reminder of how swiftly fortunes can change in the global entertainment business.
