Paramount Skydance’s $110 billion bid for Warner Bros Discovery derails Netflix deal

Netflix’s planned acquisition of Warner Bros. Discovery has collapsed after Paramount Skydance submitted what was described as a “superior” $110 billion offer for the Hollywood studio.

The late-stage proposal prompted Netflix to withdraw from the process. The streaming giant said Warner Bros. Discovery would have been “nice to have” at the right price, but not a “must have” at any price, Caliber.Az reports per foreign media. 

Paramount Skydance Chief Executive David Ellison has already outlined plans to strengthen the combined company’s position in the global streaming market. He discussed merging the portfolios of Paramount+ and HBO Max to better compete with Netflix.

Although the degree of operational independence following the acquisition remains unclear, Skydance management has pledged to keep both studios as separate brands and to release at least 30 films per year.

The combined company would become one of the world’s largest media empires, encompassing major studios and television networks including CNN and CBS. It would control a film library of more than 15,000 titles, including the “Harry Potter,” “Game of Thrones,” and “Mission: Impossible” franchises.

The agreement follows a fierce bidding battle for Warner Bros. Discovery, in which Netflix declined to match Paramount’s latest offer of $31 per share. Under the terms of the deal, Paramount will pay Netflix $2.8 billion in compensation for breaking the prior agreement.

The acquisition will be financed with $47 billion in equity from the family of Skydance Media’s founder David Ellison and investment fund RedBird Capital Partners, alongside $54 billion in debt. The transaction is expected to close in the third quarter of this year.

By Sabina Mammadli