By Miguel Mike Medina
Photo Credit: Getty
Netflix will no longer pursue a deal to buy Warner Bros Discovery. The news of Netflix’s decision to ditch the bid comes as a surprise.
In December, Netflix had the momentum of a possible merger with Warner Bros Discovery. Netflix had four business days to make changes to its own proposal. The streaming giants’ co-CEOs, Ted Sarandos and Greg Peters, decided to turn the other way.
Sarandos made a visit to the White House on Thursday to discuss meetings regarding the Warner Bros. Discovery bid. Sarandos and Peters issued a statement announcing their decision.
‘We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match,” Sarandos and Peters said. “This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
David Ellison, son of billionaire Oracle founder Larry Ellison, is the CEO of Paramount Skydance. The bid from Paramount also included a $7 billion breakup fee. Paramount agreed to pay the $2.8 billion breakup fee that WBD would owe Netflix if that deal didn’t go through.
With Netflix out of the picture, Paramount will be on its way to merge with Warner Bros Discovery. The deal is not official yet because they would need approval from federal antitrust regulators, potentially foreign regulators, and shareholders.
Networks such as CNN, TBS, TNT, Cartoon Network, and Nickelodeon will all be under one roof with this merger. Cartoon Network and Nickelodeon have been rivals for years, and now they will be sibling networks.
It was an epic battle between Paramount and Netflix. The two giants have argued that their proposals are good for consumers and the wider industry.
Warner Bros. Discovery CEO David Zaslav praised Netflix and wished them nothing but the best. Zaslav was gracious in his statement and doesn’t have hard feelings. He respects the decision-making.
“Netflix is a great company, and throughout this process, Ted, Greg, Spence, and everyone there have been extraordinary partners to us. We wish them well in the future,” Zaslav said.
On Thursday, Netflix’s stock went up by 10%. Paramount didn’t stay behind, as its stock rose 5%, while WBD’s fell 2%.
David Ellison is coming for the throne. Skydance bought Paramount two months ago, and now it’s about to become a reality with WBD. Ellison is on his way to being called the “King of Hollywood.”
Miguel Mike Medina is the publisher of The MMM Journal. He can be reached at medinamiguelmike@gmail.com and themmmjournal@gmail.com
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