Netflix abandons its plans to buy Warner Bros. Discovery!

Netflix throws in the towel, Paramount wins the bid. Netflix co-CEOs Ted Sarandos and Greg Peters released a statement Thursday explaining their decision, deeming the deal "no longer financially attractive." They clarified that it was "a great opportunity at the right price, not an essential asset at any price." The two executives stated: "The transaction we had negotiated would have created shareholder value, with a clear path to regulatory approval. However, we have always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive. We are therefore foregoing matching that offer." With Netflix now out of the running, Paramount's offer is very likely to be approved by Warner's board of directors, which had already deemed its latest version a "superior proposal" to that of the streaming giant. Paramount is expected to acquire Warner. David Zaslav, president and CEO of Warner Bros. Discovery, also reacted in a statement: "Netflix is a great company and throughout this process, Ted, Greg, Spence and all their teams have been extraordinary partners for us. We wish them all the best for the future. Once our board of directors votes to approve the merger agreement with Paramount, it will create significant value for our shareholders. We are excited about the potential of a combined entity bringing together Paramount Skydance and Warner Bros. Discovery, and we look forward to starting to work together to tell the stories that resonate with the world." Paramount's latest offer was $31 per share, along with several additional benefits, including a $7 billion regulatory breach compensation in the event the deal falls through due to regulatory issues. This is in addition to a $2.8 billion termination fee that Warner Bros. will now have to pay Netflix to end the existing merger agreement. Netflix shares jumped more than 10%. Paramount CEO David Ellison had stated earlier in the day: "We are delighted that the WBD board unanimously confirmed the superior value of our offer, which provides WBD shareholders with a better valuation, as well as greater certainty and a faster closing of the transaction." Following this announcement, Netflix stock jumped more than 10% in after-hours trading. The two co-CEOs assured that they will continue their current strategy, notably by continuing to invest heavily in their original content, with $20 billion allocated this year to films and series. It's safe to say that the showdown between the two giants has been epic. And we hope that, in this battle against the streaming platforms, cinema will emerge victorious. An outcome all the more welcome as it was far from certain.