“Netflix” refused to buy “Warner Bros.”, but “Paramount” is ready to buy the studio instead

“Netflix” has decided not to buy media conglomerate “Warner Bros. Discovery”. The company says “Paramount” latest offer made the deal too expensive and unprofitable.

Bloomberg writes about this.

Instead, “Netflix” plans to invest nearly $20 billion in its streaming business this year. “Netflix” shares rose 13% after the announcement that “Warner Bros.” would not buy the company, while “Warner Bros.” shares fell as investors no longer expect an auction.

In December, “Netflix” signed an $82.7 billion deal to buy Warner Bros.ʼ studio and streaming business, but “Paramount” made counteroffers and the bidding remained open. At the end of the bidding, “Warner Bros.” recognized “Paramount” offer of $31 per share as the best.

“Paramount” plans to acquire “Warner Bros.” cable networks such as CNN and TNT and has already secured $57.5 billion in financing from banks and investors to complete the deal. The company is also willing to pay “Warner Bros.” $2.8 billion to cover “Netflix” costs of canceling the deal, and $7 billion if regulators donʼt approve the deal.

The US Senate is planning hearings on the “Warner Bros.” purchase, and some politicians, like Senator Elizabeth Warren, are criticizing the merger for potential price increases and fewer content choices for viewers.

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