Netflix (NFLX) announced that it will not raise its bid for Warner Bros. Discovery (WBD) after the media giant’s board deemed a sweetened, all‑company takeover offer from Paramount Skydance (PSKY) as “superior.”
The streaming company said a higher price for Warner Bros. (WBD) was no longer financially attractive. The revised Paramount (PSKY) offer was at a purchase price of $31.00 per share in cash, a one-dollar increase from its earlier bid, which valued the company at around $108B.
“This year, we’ll invest approximately $20 billion in quality films and series and will expand our entertaining offering. Consistent with our capital allocation policy, we’ll also resume our share repurchase program,” read a statement from Netflix (NFLX).
Warner Bros. Discovery (WBD) is contractually obligated to pay Netflix a $2.8B breakup fee for terminating the original deal.
Shares of Netflix (NFLX) soared 10.2% in postmarket trading as investors looked at the development as a positive. Warner Bros. Discovery (WBD) fell 2.2% in the late session, while Paramount Skydance (PSKY) was 3.8% higher.