Warner Bros. was “nice to have” but not at any price, says Netflix

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Nice to have

In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters said: “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.”

Netflix thanked WBD executives — including CEO David Zaslav, CFO Gunnar Wiedenfels, Bruce Campbell, Brad Singer, and the board — for overseeing what it called a fair and rigorous process. The company said it believed its deal would have strengthened the entertainment industry while preserving and creating production jobs in the US, but added: “This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”

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The move comes after Warner Bros. Discovery’s board formally determined that Paramount Skydance’s all-cash $31‑per-share bid provides superior value and a faster, more certain path to closing, effectively outmatching Netflix’s previous agreement. Paramount’s offer also includes financial safeguards, such as covering termination fees owed to Netflix, and is backed by committed financing from major lenders and the Ellison Trust, giving shareholders confidence in execution. Analysts note that while the deal still faces regulatory review, including potential scrutiny over media consolidation in the US, Paramount’s position as the likely acquirer now appears strong.

Investment

Netflix emphasised that its business remains “healthy, strong, and growing organically,” driven by its content slate and streaming platform. The company said it plans to invest approximately $20bn in films and series this year, expand its entertainment offerings, and resume its share repurchase program, consistent with its capital allocation strategy.

“We will continue to do what we’ve done for more than 20 years as a public company: delight our members, profitably grow our business, and drive long-term shareholder value,” the co-CEOs said.