Niv Bavarsky
Yesterday, Warner Bros. Discovery had a busier day than Barbie when she entered the human world—and by the end of it, the famed studio had gone from having a deal to be acquired by Netflix to having new buyer Paramount Skydance lined up. It happened faster than a Twister: The ending of the monthslong corporate saga came together in just a few hours. In the afternoon, WBD’s board announced that Paramount Skydance’s most recent hostile takeover offer was superior to the deal it had previously struck with Netflix, starting a 4-day clock for the streaming giant to come up with a counteroffer. But by early in the evening, Netflix walked away instead, refusing to up its bid and making Paramount’s offer the winner. Here’s what it took:
Here’s looking at you, TedExplaining the decision to tell WBD to get on the plane with Paramount, Netflix’s Ted Sarandos and his co-CEO Greg Peters released a statement saying Kenough was Kenough: “This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.” Plus, Netflix can expect to receive a $2.8 billion breakup fee (covered by Paramount, per its offer to WBD). Netflix investors don’t seem bummed out. The stock jumped 10% in after-hours trading following the announcement. The credits aren’t rolling yetThough Paramount is now the winning bidder, the deal will need to be cleared by antitrust regulators in the US and abroad, a process that will likely take at least several months. Still, Paramount asserted last month that its offer provided “a more certain, expedited path to completion” than Netflix’s. Both Larry Ellison, who is bankrolling the Paramount deal, and his son, David Ellison, the Paramount CEO, have personal relationships with President Trump. Big picture: If the deal goes through, the combined Paramount Skydance Warner Bros. Discovery will control two streaming platforms, two major news networks, and two Hollywood studios. |
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