Netflix has decided not to increase its offer for Warner Bros after being informed that Paramount Skydance’s revised proposal qualifies as a “Superior Proposal” under the terms of Warner Bros Discovery’s existing merger agreement with the streaming giant.
In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters said the company would not match the updated bid. They noted that while the originally negotiated transaction offered a clear path to regulatory approval and potential shareholder value, the revised price required to compete with Paramount Skydance’s proposal no longer made financial sense for Netflix.
Calling Warner Bros a world-class organisation, the executives thanked David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the Warner Bros Discovery board for conducting what they described as a fair and thorough process. They added that Netflix would have been responsible custodians of the studio’s iconic brands and believed the deal could have strengthened the broader entertainment industry while supporting production jobs in the United States.
However, the statement emphasised that the acquisition was “a nice to have at the right price, not a must have at any price,” underscoring the company’s disciplined approach to capital allocation.
Netflix reiterated that its core streaming business remains strong and continues to grow organically. The company plans to invest approximately $20 billion this year in films and series, further expanding its global entertainment portfolio.
