Warner Bros. Discovery, Inc. (NASDAQ:WBD) shares are trading lower Friday after Netflix, Inc. (NASDAQ:NFLX) announced that it declined to raise its offer to acquire the company.
Netflix Declines To Match Paramount Skydance Bid
Netflix said it previously received notice from Warner Bros. Discovery that its Board of Directors determined Paramount Skydance Corporation‘s (NASDAQ:PSKY) latest proposal constitutes a "Superior Proposal" under the terms of WBD's existing merger agreement with Netflix.
In a statement from co-CEOs Ted Sarandos and Greg Peters, Netflix said it would not match the revised bid.
"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," the company said.
Netflix added that the transaction was "always a ‘nice to have' at the right price, not a ‘must have' at any price."
The company said its business remains healthy and growing organically, and that it plans to invest approximately $20 billion this year in films and series while resuming its share repurchase program.
Warner Bros Stock Edges Lower
WBD Price Action: At the time of publication, Warner Bros. shares are trading 1.91% lower at $28.26, according to data from Benzinga Pro.
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