In its statement, Netflix indicated that the current offer from Paramount Skydance makes further attempts to acquire Warner Bros. financially impractical.
Paramount Skydance offered $31 per share for the purchase of Warner Bros. This offer also includes that Paramount Skydance will take on the payment of a $2.8 billion penalty that Warner Bros. would have to pay to Netflix in the event of a termination of the previous agreement.
Following the news that Netflix will not continue the fight for Warner Bros., the company's shares jumped by 8%, according to Bloomberg.
For several months, Paramount and Netflix competed for the assets of Warner Bros. On December 5, Netflix announced its intention to acquire Warner Bros. studios and the HBO Max streaming service for $82.7 billion (approximately $27.75 per share). In response, Paramount initially offered $108 billion ($30 per share) for all of Warner Bros., including channels such as CNN, TNT Sports, and Discovery, and then improved its offer to $31 per share.
