Netflix Won't Call Rival Offer, Leaving Warner to Paramount

Netflix dropped its effort to buy Warner Bros. Discovery on Thursday, clearing the way for a rival offer led by Paramount Skydance boss David Ellison. The streaming giant said Thursday it will not increase its bid to match a higher proposal from Paramount after the Warner Bros. Discovery board earlier in the day declared that bid superior, calling the acquisition "no longer financially attractive." Netflix faced a four-day window to match the Paramount bid. Netflix Co-CEOs Ted Sarandos and Greg Peters said the Warner Bros. Discovery deal was "always a 'nice to have' at the right price, not a 'must have' at any price," the New York Times reports.

Paramount's all-cash offer includes $31 per share, as well as a list of provisions to sweeten the deal. Netflix shares jumped more than 10% in after-hours trading Thursday once the Netflix decision was announced, per the Hollywood Reporter. Sarandos and Peters said they'll keep putting their money into content. The deal would have significantly expanded Netflix's footprint in traditional Hollywood production and content libraries. Ellison and his father, Larry, have a close relationship with President Trump, the AP points out. The president previously made unprecedented suggestions about being involved in seeing a deal through before walking back those statements and maintaining that regulatory approval of the acquisition will be up to the Justice Department.