- Netflix on Thursday withdrew its offer to buy Warner Bros., citing financial concerns.
- Paramount Skydance's revised $31 per share offer was deemed superior by Warner Bros Discovery.
LOS ANGELES — Netflix on Thursday signaled it was backing away from its offer to buy Warner Bros. Discovery's streaming and studio assets, saying the deal was no longer financially attractive after Paramount Skydance revised its offer for the coveted Hollywood studio to $31 per share.
Shares of Netflix rose around 10% in extended trading.
"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," Netflix said in a statement.
Warner Bros. Discovery said earlier in the day that Paramount's revised $31 per share offer was superior to its existing deal with Netflix.
Netflix had earlier this month granted Warner Bros. a seven-day waiver to seek a "best and final offer" from Paramount for the company.
Netflix, which was looking to buy Warner Bros.' streaming and studio assets, agreed in December to a deal valued at $27.75 per share. The company had said its offer, along with a planned divestiture of Warner Bros.' cable assets, would deliver a greater shareholder value.
In its revised bid, Paramount raised the termination fee it would pay should the deal fail to gain regulatory approval to $7 billion from $5.8 billion.
Paramount said it welcomed Warner Bros. board's unanimous reaffirmation that its bid represents the stronger offer.
The Ellison Trust is committing $45.7 billion in equity, up from $43.6 billion previously, backed by Larry Ellison and including any additional funds needed to satisfy Paramount's bank solvency requirements, the firm said.
Bank of America Merrill Lynch, Citi and Apollo are providing $57.5 billion in debt financing, increased from an earlier $54 billion commitment.
Activist investor Ancora Holdings, which owns a small stake in Warner Bros., has also stepped up pressure on the HBO owner by saying the company did not adequately engage with Paramount.
Contributing: Jaspreet Singh and Sneha S K
