Streaming giant, Netflix, has backed away from its proposal to buy Warner Bros Discovery, clearing the way for Paramount Skydance to win the long battle for one of Hollywood’s most storied studios in a deal worth over $100 billion.
Warner Bros, which announced it was up for sale last year, said Paramount’s latest bid was “superior” to the one from Netflix, which in turn refused to raise its offer.
Paramount, which has been insistent regarding the deal, would also need approval from the US Department of Justice as well as European regulators.
Netflix executives say they have declined to match Paramount’s bid as “the deal is no longer financially attractive” at that price.
The buyer would gain control of the iconic studio along with its films and media networks.
The takeover has been touted to significantly reshape the global media landscape, which includes the streaming market.
Last December, Warner Bros agreed to a takeover offer from Netflix for some of its assets, in a deal worth roughly $82 billion, including debt.
Paramount then made a rival proposal, which was refused by Warner Bros, but an increased offer was made earlier this week, boosted by $1 per share.
“The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” Netflix co-chief executives Ted Sarandos and Greg Peters said in a statement. “However, we’ve always been disciplined.”
“This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” the Netflix executives added.
The announcement came just hours after Mr Sarandos had visited the White House on Thursday.
The development marks the possible end of the saga that saw offers and refusals and could possibly change the global streaming market as Paramount is backed by some of the biggest names in the industry, including Oracle owner, Mr Larry Ellison.