Netflix has given up the fight for Warner Bros. Discovery. It decided not to raise the bid

Quotes of streaming service Netflix jumped 11% in extended trading on Thursday, February 26, after it became known that it refused to buy the assets of Warner Bros. Discovery (WBD), which it had been vying for since December. Earlier in the day, WBD's board of directors deemed Paramount Skydance's new, improved offer more favorable, CNBC explains.

This week Paramount once again raised its bid from $30 to $31 per share. And it intends to buy the entire media company. Netflix offered to buy only the studio and streaming business WBD - at $27.75 per share.

The WBD board said Thursday that Netflix would have four business days to amend its bid to accommodate Paramount's stronger bid. However, the streaming giant decided to pull out of the process. "The deal we agreed to would have created value for shareholders and had a clear path to regulatory approval," Netflix executives said in a statement. - However, we always act in a disciplined manner, and at the price necessary to match Paramount Skydance's latest offer, the deal is no longer financially attractive. Therefore, we will not be raising the bid."

Some Wall Street analysts warned that buying WBD is expensive for Netflix and would put at least short-term pressure on its stock price. Others talked about potential synergies between the two companies that could boost the streaming giant's revenue.

Paramount Skydance shares rose 3.5% in the postmarket. WBD lost about 2% of its value.

This article was AI-translated and verified by a human editor