Netflix, has declined to raise its offer for Warner Bros. after receiving notice from Warner Bros. Discovery (WBD) that its Board of Directors has determined Paramount Skydance’s latest proposal constitutes a “Superior Proposal” under the terms of WBD’s existing merger agreement with Netflix.
In a statement issued by co-CEOs Ted Sarandos and Greg Peters, Netflix has said that while the negotiated transaction would have created shareholder value with a clear path to regulatory approval, matching Paramount Skydance’s revised offer would no longer be financially attractive. The company has therefore declined to match the bid.
Netflix has described Warner Bros. as a world-class organization and has thanked David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the WBD Board for conducting what it called a fair and rigorous process. The company has stated it believed it would have been a strong steward of Warner Bros.’ brands and that its proposal would have strengthened the entertainment industry and preserved and created more production jobs in the U.S. However, it has maintained that the transaction was a “nice to have” at the right price rather than a “must have” at any price.
The company has reiterated that its core business has remained healthy and continues to grow organically, driven by its content slate and streaming platform. Netflix has confirmed it will invest approximately $20 billion this year in films and series and will expand its entertainment offering. In line with its capital allocation policy, the company has also said it will resume its share repurchase program.
Netflix has added that it will continue focusing on growing its business profitably, serving its members and driving long-term shareholder value.
