Netflix retreats, Paramount set to acquire Warner Bros with 'superior' $111 billion bid

In a surprising turn of events, Paramount has stood out victorious in its bid to acquire Warner Bros Discovery (WBD) with a staggering $111 billion (€94 billion) bid after Netflix withdrew its offer.

Paramount's hefty sum of a bid is valued at $31 per share, which was deemed "superior" by WBD's board, prompting Netflix to step back, due to a lack of financial appeal in matching the bid.

Warner Bros' acquisition by Paramount indicates a massive shift in the realm of media, as the buyer aims to gain control over key assets, including HBO, CNN, and major film franchises like Harry Potter and Batman.

Paramount’s ambition to purchase the entire WBD business is contrary to Netflix’s previous plan, whose primary focus was WBD’s studio and streaming operations.

Following this deal, the Ellison family will manage some of the most influential names in US media, including CBS News and 60 Minutes.

Paramount shares surged by 6% in after-market trading, boosting its market value to over $12 billion. David Zaslav, WBD's CEO, reflected optimism about the merger, stating it would create "tremendous value for our shareholders."

It should be mentioned that regulatory approval from both the US and European authorities remains a crucial hurdle.

Highlighting that since the deal has not been finalised on paper, California’s Attorney General, Rob Bonta, has promised a thorough review of the proposed merger.

Investors welcomed Netflix's withdrawal, with its shares jumping 8.5%, as the streaming giant navigated the complexities of this phenomenal deal.

As Paramount buckles up for upcoming regulatory challenges, the outcome of this acquisition would nothing but reshape the future of Hollywood.