Netflix walks away but Warner goes from frying pan to fire as Paramount takeover looms
Netflix says Warner Bros. takeover was "nice to have" but not "must have". Clearing the way for Paramount.
Netflix has sensationally walked away from its offer to buy Warner Bros., clearing the way for Paramount to take control of the vast media conglomerate.
Last December Netflix agreed a deal with Warner Bros for around $82 billion, but a bidding war ensued when Paramount Sundance launched an aggressive counter offer.
After a protracted battle, Paramount has won the day after Netflix declined to further raise its offer. Netflix confirmed it has backed away from the deal, declaring it was not a “must have” proposition for the streaming giant.
In a statement “The transaction we negotiated would have created shareholder value with a clear path to regulatory approval,” read a statement from Netflix co-CEOs Ted Sarandos and Greg Peters (via BBC). “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.”
Acquiring Warner would have given Netflix an extremely dominant position in the entertainment market, boosting its own original programming with the cinematic might of Warner Bros. array of studios and properties.
The proposed takeover had upset movie theatre trade groups who feared Netflix’ preference for shorter theatrical windows before reaching the home streaming market. Netflix had promised to keep the status quo, for its part.
However, it might be a frying pan to fire situation under Paramount’s leadership given the right wing leanings of Paramount’s leadership – the tech billionaire Ellison family who are strong Donald Trump allies. They have already transformed the once-iconic CBS News into a borderline state media outlet for the Trump administration.
The future of CNN – a traditionally left of centre leaning network – will now come into question if the deal is rubber stamped. It may be sold off or even shut down. Another potentially dark day for press freedom in the United States is on the horizon.
Chris Smith
