Netflix, After Walking Away From Warner Bros. Deal, Will ‘Move Forward’ With ‘$2.8 Billion in Our Pocket That We Didn’t Have a Few Weeks Ago,’ CFO Says

Netflix ended its planned acquisition of Warner Bros. Discovery’s studios and streaming business after Paramount Skydance increased its bid and Netflix received a $2.8 billion breakup fee.
The outcome shifted control of the transaction to a hostile, debt-fueled takeover by Paramount Skydance, with Warner Bros. Discovery terminating Netflix’s agreement in favor of a “superior” offer.
Netflix now retains capital it did not expect to have and says it will continue pursuing growth opportunities without changing its M&A strategy.

<p>Netflix CFO Spence Neumann said at the Morgan Stanley Technology, Media & Telecom Conference that Netflix exited the Warner Bros. Discovery bidding process because the price increased beyond what the company considered financially acceptable. Netflix had agreed in December to buy Warner Bros.’s studios and streaming business, but on Feb. 26 it abandoned the deal after David Ellison’s Paramount Skydance raised its hostile bid for WBD in its entirety to $31 per share. Warner Bros. Discovery terminated its agreement with Netflix in favor of Paramount’s offer, which it described as “superior.”</p><p>Paramount Skydance paid Netflix a $2.8 billion breakup fee following the termination. Neumann said Netflix would “move forward” with the $2.8 billion and that the Warner Bros. process did not change Netflix’s M&A strategy. He said Netflix believed it would have been a strong steward of the assets and had confidence in a path to regulatory approval.</p>