Netflix Drops $83 Billion Bid for Warner Bros, Saying It’s Not a ‘Must Have’
David Ellison’s Paramount is poised to buy the studio for $111 billion.
In a plot twist worthy of a Stranger Things episode, Netflix walked away from an $83 billion deal to acquire Warner Bros. Discovery. The streaming giant had reached an agreement in December to buy HBO and Warner Bros. studios, but when rival bidder Paramount countered with $111 billion, Netflix refused to match the offer.
Netflix said the deal was “no longer financially attractive” at the higher price. CEO Ted Sarandos had previously said the company was willing to “walk away and let someone else overpay for things,” calling the acquisition a “nice to have” deal rather than a “must have.”
Wall Street agreed. Netflix stock jumped nearly 10% after the announcement. The move clears the way for David Ellison’s Paramount to acquire Warner Bros. Discovery, potentially creating a major new competitor in streaming and traditional media.
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In a plot twist worthy of a Stranger Things episode, Netflix walked away from an $83 billion deal to acquire Warner Bros. Discovery. The streaming giant had reached an agreement in December to buy HBO and Warner Bros. studios, but when rival bidder Paramount countered with $111 billion, Netflix refused to match the offer.
Netflix said the deal was “no longer financially attractive” at the higher price. CEO Ted Sarandos had previously said the company was willing to “walk away and let someone else overpay for things,” calling the acquisition a “nice to have” deal rather than a “must have.”
Wall Street agreed. Netflix stock jumped nearly 10% after the announcement. The move clears the way for David Ellison’s Paramount to acquire Warner Bros. Discovery, potentially creating a major new competitor in streaming and traditional media.
Sign up for the Entrepreneur Daily newsletter to get the news and resources you need to know today to help you run your business better. Get it in your inbox.
