Netflix said Thursday it is stepping away from its offer to buy streaming and studio assets from Warner Bros. Discovery after a higher bid from Paramount Skydance.
Warner Bros. said Paramount’s new $31-a-share offer is better than Netflix’s earlier deal of $27.75 per share. Netflix said matching the higher price would not make financial sense.
Paramount also increased its breakup fee to $7 billion if the deal fails and secured more funding. The offer is backed by the Ellison Trust, linked to Larry Ellison, along with major bank financing.
Shares of Netflix rose about 10 per cent after the news. Meanwhile, activist investor Ancora Holdings criticized Warner Bros. for how it handled talks with Paramount.
