Netflix Backs Out of WBD Deal as Paramount’s $31 Offer Prevails, Stock Surges 9%
Netflix declined to increase its bid for Warner Bros. Discovery after the board deemed Paramount’s $31 per share proposal superior, ending months-long takeover talks. Netflix shares jumped 9% in after-hours trading as Paramount moves closer to acquiring assets including CNN and HBO pending regulatory approval.
1. Netflix Withdraws Bid
Netflix formally declined to raise its offer for Warner Bros. Discovery, stating that matching Paramount’s latest $31 per share proposal was no longer financially attractive. This decision brings an abrupt end to Netflix’s pursuit of the media giant after more than five months of negotiations.
2. Paramount Poised to Acquire WBD
With Netflix out of the race, Paramount stands on the verge of acquiring Warner Bros. Discovery’s assets, including CNN, HBO and multiple movie studios. The deal must still clear antitrust and regulatory reviews, a process expected to take several months.
3. Market Reaction and Impact
Investors rewarded Netflix’s focus on financial discipline by driving shares up 9% in after-hours trading. Warner Bros. Discovery’s stock had more than doubled during the bidding war, while Paramount shares held steady as it prepares for the next phase of the acquisition.