27 Feb – After months of pressure from Paramount Skydance (PSKY), it was revealed that Netflix is backing out of its previous Warner Bros bidding. Co-CEOs Ted Sarandos and Greg Peters revealed the news in a statement on 26 February, saying that the deal is no longer financially attractive to the company. "The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, 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," the co-CEOs said. "We believe we would have been strong stewards of Warner Bros.' iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the US. But this transaction was always a 'nice to have' at the right price, not a 'must have' at any price."
Now that Netflix is out, there is sky-high chance that Warner Bros will be accepting the bid from PSKY, as stated by Warner Bros CEO, David Zaslav. "Once our Board votes to adopt the Paramount merger agreement, it will create tremendous value for our shareholders. We are excited about the potential of a combined Paramount Skydance and Warner Bros. Discovery and can't wait to get started working together telling the stories that move the world." It is noted that PSKY's latest proposal of USD 31 per share include other offers including ticking fee payable to shareholders equal to USD 0.25 per quarter beginning after 30 September, 2026. Netflix is not at loss. Paramount has agreed to pay the USD 2.8 billion termination fee that WB would have had to pay Netflix to terminate existing agreement, and Netflix shares have now soared by more than 10 percent after the decision was announced. It would not be an easy feat for PSKY, though, as several politicians are now calling it an "antitrust disaster". Senator Elizabeth Warren released a statement, saying, "A Paramount Skydance-Warner Bros. merger is an antitrust disaster threatening higher prices and fewer choices for American families."