Netflix Exits WBD Bid, Commits $20B to Content and Buybacks
Netflix declined to match Paramount Skydance’s superior proposal under the terms of its Warner Bros Discovery merger agreement, deeming the required price financially unattractive. The streaming giant will instead invest about $20 billion in films and series this year and resume its share repurchase program.
1. Netflix Declines to Match Paramount Proposal
Netflix received notification that Warner Bros Discovery’s board deemed Paramount Skydance’s revised bid a superior proposal under the merger agreement. After assessing the financial terms, Netflix’s co-CEOs concluded that matching the offer would not deliver sufficient value and chose to let the deal lapse.
2. Shift to Organic Growth and Buybacks
Following the decision, Netflix reinforced its focus on organic subscriber growth and content investment, allocating roughly $20 billion this year to films and series. The company also announced the resumption of its share repurchase program to return capital to shareholders.