Netflix pulls out of Warner Bros Discovery bid after Paramount offer

<h1>Netflix follows Warren Buffett's playbook: Don't overpay, walk away</h1>
<h2>Netflix had four business days to match, but withdrew from the bidding process after about an hour</h2>
<p>Warner Bros. Discovery CEO David Zaslav may have been counting on watching one last round in the Netflix vs. Paramount Skydance boxing match to acquire the <a href="https://www.foxnews.com/category/media">media company</a> he runs. What he might not have anticipated was that Netflix wouldn't even bother re-entering the ring.</p>
<p>Thursday after the market close, WBD announced that Paramount Skydance’s last and best offer of $31 a share for its film studio, streaming platform and cable networks was superior to Netflix’s previously accepted bid of $27.75 a share for the studio and streaming assets.</p>
<p>WBD's declaration started a countdown clock: <a href="https://www.foxbusiness.com/category/netflix">Netflix was granted</a> four business days to match or beat Paramount’s new bid, but just an hour and 10 minutes later, Netflix left the arena.</p>
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<a href="https://www.foxbusiness.com/media/netflix-backs-out-warner-bros-bidding-war-after-paramount-made-supperior-offer">NETFLIX BACKS OUT OF WARNER BROS BIDDING WAR AFTER PARAMOUNT MADE 'SUPERIOR' OFFER</a>
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<p>In a joint statement, the streamer's co-CEOs, Ted Sarandos and Greg Peters, said, "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 <a href="https://www.foxbusiness.com/category/economy">financially attractive</a>, so we are declining to match the Paramount Skydance bid." </p>
<p>Considering Sarandos’ tone in the final days of the process, the market should have been ready for the quick exit. In an interview Feb. 20 on <a href="https://www.foxbusiness.com/shows/the-claman-countdown">FOX Business’ "Claman Countdown,"</a> Sarandos, when pressed as to whether he'd match a potentially higher bid by Paramount Skydance, seemingly took a page out of former Berkshire Hathaway CEO Warren Buffett's "never overpay for an asset no matter how much you want it" playbook.</p>
<p>"We've been very disciplined buyers in our careers. Our shareholders know us and they expect us to continue to do what we do, which is remain a disciplined buyer," Sarandos told FBN.</p>
<p>Netflix shareholders have never fully embraced the merger since the official bidding process began Nov. 20. Since then, Netflix shares have shriveled more than 19%.</p>
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<p>Much of the concern focused on whether the $82.7 billion dollar cost might shake Netflix's solid balance sheet, and whether the deal would pass regulatory muster.</p>
<p>
<a href="https://www.foxbusiness.com/media/netflix-co-ceo-accuses-james-cameron-spreading-misinformation-about-warner-bros-acquisition">NETFLIX CO-CEO ACCUSES JAMES CAMERON OF SPREADING 'MISINFORMATION' ABOUT WARNER BROS. ACQUISITION</a>
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<p>Thursday evening when WBD confirmed the superiority of Paramount's bid, Netflix shares saw a relief rally, soaring nearly 10% in after-hours trade.</p>
<p>In its statement, Netflix’s co-CEOs intimated they agreed with shareholders.</p>
<p>"This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price," Sarandos and Peters said.</p>