Netflix Walks Away from $83 Billion Warner Bros Bid

"Netflix said the deal was "no longer financially attractive" at the higher price. CEO Ted Sarandos had previously said the company was willing to "walk away and let someone else overpay for things," calling the acquisition a "nice to have" deal rather than a "must have.""

"Wall Street agreed. Netflix stock jumped nearly 10% after the announcement. The move clears the way for David Ellison's Paramount to acquire Warner Bros. Discovery, potentially creating a major new competitor in streaming and traditional media."

Netflix terminated its December agreement to acquire Warner Bros. Discovery for $83 billion after Paramount presented a competing bid of $111 billion. Netflix declined to match the higher price, determining the deal was no longer financially attractive. CEO Ted Sarandos had previously indicated the company's willingness to walk away from overpaying, characterizing the acquisition as a desirable but non-essential transaction. Wall Street responded positively, with Netflix stock rising nearly 10% following the announcement. This decision clears the path for Paramount to acquire Warner Bros. Discovery, potentially establishing a formidable new competitor in both streaming and traditional media sectors.

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