Previously, Netflix agreed to acquire part of Warner Bros.' assets; however, Paramount made a more lucrative offer, which was rejected. This week, Paramount proposed to increase the amount to $1 per share, which, according to Warner Bros., "exceeds" Netflix's offer, and the latter refused to raise its price.
Netflix representatives explained their refusal by stating that the deal under the proposed terms is no longer economically viable. They also emphasized that they initially viewed this deal as an additional opportunity rather than a mandatory purchase.
The merger could significantly alter the media landscape, as the buyer would gain control over a well-known studio and its films. California Attorney General Rob Bonta noted that the merger is not yet final, as it is subject to review by regulatory authorities.
Bonta added that the California Department of Justice is already conducting an investigation to assess the potential impact of the deal on the entertainment industry, which is vital to the state's economy.
If the deal is approved, Paramount will also acquire the streaming service HBO Max, as well as CNN, Food Network, and several sports channels. At the same time, Paramount, striving for the status of a Hollywood giant, is backed by tech billionaire Larry Ellison.
There are concerns regarding Paramount's political ties to the Trump administration, as Trump previously criticized CNN and suggested selling the channel as part of the deal with Warner Bros.
CNN CEO Mark Thompson urged employees not to jump to conclusions about the company's future following news of a potential merger with Paramount.
Paramount's recent offer, which was $1 higher than the previous one, has drawn attention and raised concerns about the potential impact on CNN's news channel and its reputation.
If the deal goes through, it could have a significant impact on Hollywood and lead to job cuts in an industry that is already struggling with production.
Warner Bros. previously announced the sale of its streaming and film assets to Netflix for $82 billion, including debt. However, Paramount's latest attempt to make a more attractive offer could change the course of events.
As part of its new proposal, Paramount agreed to pay $31 per share and provide compensation in the event of a deal failure, which is a significant step toward acquiring Warner Bros.
