Netflix Inc (NASDAQ:NFLX, XETRA:NFC) has abandoned its attempt to acquire Warner Bros Discovery Inc (NASDAQ:WBD, XETRA:J5A) stepping aside to allow rival bidder Paramount Skydance to take control of the storied Hollywood studio in a deal valued at $111 billion.
The streaming giant said the price required to match Paramount Skydance's most recent offer of $31 a share had made the transaction financially unattractive, and that it would instead continue channelling investment into its own content slate, including around $20 billion earmarked for films and television this year.
Warner Bros. Discovery's board judged Paramount's latest proposal to be the superior offer, with chief executive David Zaslav expressing enthusiasm for the combined business and its prospects for shareholders.
Netflix had originally struck an $82.7 billion agreement, including assumed debt, to acquire Warner Bros.' studio and streaming operations in December, but sustained counter-bidding from Paramount kept the contest alive for months.
Netflix shares surged by as much as 13% in after-hours trading following the announcement, suggesting investors welcomed the decision to walk away, while Warner Bros. stock fell as the prospect of a bidding war evaporated.
Activist investor Ancora Holdings described the outcome as a victory for Warner Bros. shareholders and the broader industry.