2026년 2월 27일 · Unknown · financial · 출처 Yahoo Finance
This article first appeared on GuruFocus.
Netflix (NASDAQ:NFLX) stepped back from its pursuit of Warner Bros. Discovery (NASDAQ:WBD), effectively handing the advantage to Paramount Skydance (NASDAQ:PSKY) in the $111 billion contest for the Hollywood studio. Management said it believed its proposal could have secured regulatory approval and delivered shareholder value, but at the price needed to match Paramount's latest $31-a-share bid, the economics no longer made sense. Rather than stretch, Netflix reiterated it will continue investing in its own platform, including roughly $20 billion this year on films, television and other programming. The market's initial reaction suggested investors favored that discipline, with Netflix shares rising more than 13% in after-hours trading, while Warner Bros. declined and Paramount was little changed.
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The backdrop is a months-long bidding process that began with Netflix's December agreement to acquire Warner Bros.' studio and streaming assets for $82.7 billion, including assumed debt. Paramount's competing offer for the entire company kept the auction alive, culminating in Warner Bros. determining that the $31-a-share proposal represented the superior offer. Paramount, led by David Ellison following the August merger of Skydance Media with Paramount, reinforced its bid with personal guarantees on $45.7 billion in equity from a trust created by Larry Ellison. The company also committed $2.8 billion to cover the breakup costs tied to Netflix's agreement and pledged a $7 billion reverse termination fee if regulatory approvals are not obtained. Debt financing commitments were increased to $57.5 billion from Bank of America, Citigroup and Apollo Global Management, up from a previously committed $54 billion.
The transaction now moves into a more politically charged phase. The US Senate Judiciary Committee has scheduled a March 4 hearing to reexamine the Warner Bros. sale, and lawmakers including Senator Cory Booker have invited Ellison to attend. Senator Elizabeth Warren criticized the proposed merger as an antitrust concern that could reduce competition. Both Ellison and Netflix co-Chief Executive Ted Sarandos traveled to Washington this week, with Sarandos spending about an hour at the White House. Against that scrutiny, Netflix remains a profitable global platform with more than 325 million subscribers, while legacy media groups such as Paramount and Warner Bros. continue to contend with declining traditional television audiences and advertising. For investors, Netflix's decision to walk away may be viewed as a measured allocation choice, even as Paramount works to close a complex and closely watched deal.
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