Pro-Trump Paramount wins out on massive Warner Bros. Discovery deal as Netflix walks away
MAGA-friendly Paramount has emerged as the victor in the high-stakes bidding war for Warner Bros. Discovery, leaving Netflix empty-handed after the streaming giant walked away from the negotiating table, the Wall Street Journal reported Thursday.
The David Ellison-led Paramount Skydance deal proved too much for Netflix, as the streamer announced it was throwing in the towel on its pursuit of Warner's crown jewels, including its sprawling movie and television studios and the HBO Max streaming service.
In a statement that screamed restraint, Netflix Co-CEOs Ted Sarandos and Greg Peters claimed they were simply being fiscally prudent.
“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,” the pair said in a statement. “This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price."
The move sent stock prices into overdrive, with Paramount surging 10% on the news, while Warner Bros. Discovery dipped 0.35% and Netflix climbed 2.29%.
Warner Bros. Discovery put its storied studio and streaming assets up for sale last year, drawing bids from Netflix, Paramount‑Skydance, and Comcast. Netflix struck a deal around Dec. 4 to acquire the coveted assets for around $83 billion, with hefty breakup fees on both sides. Paramount‑Skydance responded with a hostile all‑cash offer of about $108 billion, attacking the Netflix deal as anti‑competitive and lobbying regulators and politicians.
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