Paramount’s $31-per-Share Bid Beats Netflix’s $27.75 Offer for Warner Bros. Discovery
Netflix terminated its $27.75 per-share bid for Warner Bros. Discovery after the board deemed Paramount Skydance’s $31 per-share offer superior, clearing the way for Paramount’s acquisition of Warner’s studio and streaming assets. Paramount’s deal benefits from additional funding commitments by Larry Ellison and a clearer regulatory path.
1. Board Declares Paramount’s Offer Superior
Warner Bros. Discovery’s board unanimously affirmed that Paramount Skydance’s revised $31 per-share bid constituted a superior proposal under the terms of its merger agreement, freeing the company to terminate its existing deal with Netflix.
2. Netflix Withdraws Its $27.75 Bid
Netflix announced it would not match the Paramount offer at the required price, saying the $27.75 per-share deal it struck in December was no longer financially attractive and that matching Paramount Skydance’s valuation exceeded its disciplined investment threshold.
3. Funding and Regulatory Advantages
Paramount Skydance’s proposal includes a commitment from Larry Ellison to provide additional funding if needed to satisfy lender solvency requirements, and the deal is viewed as having a clearer path to U.S. regulatory approval compared with the Netflix offer.