Netflix withdraws from Warner Bros. acquisition talks

(Patria) - After several months of negotiations, Netflix has ultimately withdrawn its proposal to acquire Warner Bros. Discovery, paving the way for Paramount and Skydance to win a months-long battle for one of Hollywood's most iconic studios in a deal worth around $111 billion (93 billion euros).

According to the BBC, Warner Bros., which has been up for sale since last year, announced two days ago that Paramount's latest offer was "superior" to Netflix's, which in turn refused to increase its bid.

Netflix executives say they refused to match the offer because "the deal is no longer financially attractive" at that price.

As a reminder, in December, Warner Bros. agreed to Netflix's offer to acquire certain assets in a deal worth around 72 billion euros, including debt. This was about the purchase of the legendary film and TV studio, including the HBO Max platform.

Paramount then made a competing proposal, which the company rejected, but earlier this week made an increased offer of one dollar per share.

- The transaction we negotiated would create shareholder value with a clear path to regulatory approval. However, we have always been disciplined.

This transaction has always been a "nice to have" at the right price, not a "must have" at any price - said Netflix co-CEOs Ted Sarandos and Greg Peters in a statement.

This would potentially end the months-long struggle, if approved by regulators, but it will have a significant impact on Hollywood.

California Attorney General Rob Bonta said on Thursday that the potential merger "is not a done deal".

"These two Hollywood titans have not passed regulatory scrutiny - the California Department of Justice has an open investigation and we intend to be vigorous in our review," he wrote in a social media post.

The deal between Paramount and Warner Bros. could have serious consequences for the future of one of America's largest television corporations - CNN, which is owned by Warner Bros. Discovery.

Paramount, incidentally, is backed by David Ellison, son of tech billionaire Larry Ellison, who has been trying to become a Hollywood streaming giant since entering the scene, and has Trump's support.

Trump has often attacked the aforementioned news network for its reporting on his policies.

Late last year, he said he believed CNN should be sold as part of any deal with Warner Bros. He called the people running CNN "corrupt or incompetent".

American media reported that CNN chief Mark Thompson sent an email to employees as news of the almost certain deal with Paramount spread, telling workers to "not jump to conclusions about the future until we know more".

If regulators approve Paramount's deal, the company would include Warner Bros.' HBO Max streaming subscribers in its portfolio. It would also take ownership of CNN, Food Network, and a range of sports offerings.