Netflix Drops Warner Bros. Bid After Paramount Counteroffer
Does Paramount's $31 per share offer deliver superior value or would Netflix be overpaying at inflated prices?
Above: A Warner Bros. Studios water tower in Burbank, CA, on Feb. 23. Image credit: Eric Thayer/Los Angeles Times/Getty Images
The Spin
Narrative A
Paramount's offer for Warner Bros. Discovery delivers the superior value and certainty that shareholders deserve, backed by commitments from the Ellison Trust and the banks. Given all the bells and whistles that came with this proposition, it is no wonder that Warner Bros. Discovery's board unanimously recognized this as superior to Netflix's proposal.
Narrative B
In walking away from Warner Bros. Discovery, Netflix has demonstrated its financial acumen and fiscal discipline. While the acquisition would have been a boon, it was not essential ,as Netflix's business remains healthy and growth is strong. Matching Paramount Skydance's inflated bid, meanwhile, would have destroyed value for Netflix's shareholders.