Netflix has decided not to increase its offer and therefore not to proceed with the acquisition of Warner Bros., paving the way for Paramount to win the $111 billion takeover “battle.” Netflix stated that at this price the deal is no longer financially viable and that it was something “nice to have at the right price,” but not something necessary “at any cost.”
If the acquisition goes ahead, Paramount will acquire the historic Warner Bros. film studio, a vast catalog of films and series, as well as the group’s television and media networks, including CNN—something expected to make the U.S. media landscape more conservative.
The merger is still under review by judicial authorities for a possible violation of antitrust law.
Paramount’s ability to make such a large offer was based on financial maneuvering and personal funding from Larry Ellison, father of Paramount’s CEO, founder of Oracle and a major supporter of Donald Trump. Trump had insisted from the outset that he would personally have the final say on the acquisition of Warner Bros., particularly because of CNN.
It is noted, however, that the deal has not yet been approved. California Attorney General Rob Bonta stated that the merger is under investigation for a potential violation of antitrust law and is not a “done deal.” It will also require approval from the U.S. Department of Justice as well as European regulatory authorities.
Sources: ΑMNA, BBC
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