Netflix clarified that the deal, considering the price required for compliance with Paramount Skydance, has ceased to be financially viable, according to the company's statement.
Paramount Skydance made an offer to purchase Warner Bros. at $31 per share. As part of the deal, Paramount Skydance agreed to assume a penalty of $2.8 billion that Warner Bros. would have to pay Netflix in the event of terminating the previous agreement.
According to Bloomberg, Netflix's shares rose significantly by 8% immediately after the announcement that the company would not continue its pursuit of Warner Bros.
In recent months, Netflix and Paramount have been actively competing for Warner Bros. assets. On December 5, Netflix announced its intention to acquire Warner Bros. studios and HBO Max streaming for $82.7 billion (at $27.75 per share). In response, Paramount initially offered $108 billion ($30 per share) for all of Warner Bros., including cable channels such as CNN, TNT Sports, and Discovery, and then adjusted its price to $31 per share.
