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Netflix Exits Warner Bros. Discovery Bidding as Paramount Skydance Becomes Frontrunner

The deal now hinges on a March 20 shareholder vote followed by intensive antitrust reviews.

Overview

  • Netflix declined to match Paramount Skydance’s revised $31-per-share proposal for WBD, formally withdrawing from the months-long contest.
  • Warner Bros. Discovery’s board labeled the Paramount Skydance bid superior, valuing the company near $110 billion including debt.
  • Paramount Skydance’s offer relies on an unusual financing package backed by Larry Ellison and includes higher breakup protections.
  • The revised terms raise certain termination protections to about $7 billion and shift the $2.8 billion payment owed to Netflix onto Paramount Skydance.
  • Regulatory and political scrutiny is building in the U.S. and Europe, with figures such as Senator Elizabeth Warren criticizing the deal and California’s attorney general announcing a probe, while Netflix shares climbed roughly 10% after hours on the news.