Warner Bros Discovery (WBD) has decided to be officially acquired by Paramount Skydance, squashing its original deal to be acquired by Netflix. The deal will cost the latter US$110 billion (~RM428 billion), instead of the US$111 billion (~RM431 billion) that was initially agreed upon.
Netflix said it politely declined to match Paramount Skydance’s offer of US$31 (~RM120) per-share, which tops the former’s original offer of US$27.75 (~RM107) per share. In light of the new deal, Paramount will also cover the US$2.8 billion (~RM10.9 billion) termination fee owed to Netflix for WBD switching its allegiance.
“We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid,” Netflix said in a statement.
What Does This Mean For WBD?
Paramount Skydance’s acquisition of WBD means that the studio will now control the latter’s vast library of more than 15,000 titles, including marquee titles such as Game of Thrones, Harry Potter, and most importantly, the entire DC Universe. Oh, and let’s not forget the news network, CNN. Yeap, WBD owns CNN, and now it is under Paramount. Let that thought sink in.
Needless to say, Paramount’s shares rose in value after confirmation of its acquisition, about 3%, while Netflix’s dipped ever so slightly by 1%.
That said, Paramount’s successful bid and purchase woes are far from over. Given the scope and breadth of the deal, it will still need to deal with regulatory bodies in the US. Already, attorneys in California are conducting “vigorous” reviews of the deal, picking it apart and investigating the transaction, with a perceived fear that the acquisition could lead to reduced competition and higher prices that would eventually be passed on to consumers.
(Source: Business Today, Reuters)
