- Netflix in a separate statement on Thursday said it declines to raise its offer for Warner Bros.
- As per the terms of the Netflix merger agreement with Warner Bros, the decision triggered a four business day period during which time Netflix could match or counter Paramount’s offer.
Warner Bros. Discovery said on Thursday that Paramount’s $111 billion or $31-a-share offer to buy the company constitutes a “superior deal” to the one it signed with Netflix in December.
As per the terms of the Netflix merger agreement, the decision triggered a four business day period during which time Netflix could match or counter Paramount’s offer. However, Netflix declined to raise its offer.
Netflix Decline To Raise The Offer
Netflix in a separate statement on Thursday said it declines to raise its offer for Warner Bros.
Netflix said “the transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, 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”.
Warner Bros. Discovery agreed in December to sell its studio and streaming businesses to Netflix for $27.75 per share. The deal has a total enterprise value of about $82.7 billion.
Netflix shares jumped 9% in extended hours of trading.
Paramount said earlier on Thursday that the Netflix merger agreement remains in effect, and the Board continues to recommend in favor of the Netflix transaction and has not withdrawn or modified its recommendation.
Warner Bros did not immediately respond to Stocktwit's request for comment on whether it continues to favor the Netflix deal after the streaming giant announced its intent to not hike its offer.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around NFLX, WBD, and PSKY stock trended in ‘extremely bullish’ territory at the time of writing, while for PSKY, it trended in ‘bullish’ territory.
Shares of PSKY and NFLX have fallen 8% and 5%, respectively, in the past year. Meanwhile, WBD shares have risen 164% over the same period.
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