Netflix Executive Speaks Out
“We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match,” Netflix co-CEOs Ted Sarandos and Greg Peters said in a statement. “This transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price,” the pair said.
This change is quite shocking as Netflix originally signed a deal with Warner Bros. in December, but Paramount went all-in for Warner Bros., initially offering $30 per share, which was better than Netflix's $27.75.
More Details of the Deal
As a result, Netflix will get nearly $3 billion for the deal falling apart, and Paramount, in addition to $81 billion for the company, will pay $7 billion in termination fees should the deal fall through due to regulatory concerns.
Also, Paramount offered to pay a "ticking fee" of 25 cents per share. It was originally scheduled to begin in January 2027, but it'll now be September 30, 2026. This will begin if the deal hasn't closed.
It's worth noting that if this deal goes through, Paramount will own both CNN and CBS News.
In a memo to its staff, CNN President Mark Thompson said, “Don’t jump to conclusions until we know more.”
“The idea that Paramount should be allowed to control CBS and CNN should be unthinkable,” said Craig Aaron, co-CEO of media advocacy group Free Press, per The Journal, adding that the new owner promised President Trump they would “make sweeping changes to CNN given the chance, and we know what that means.”
With Netflix out of the picture, Paramount will now look to close the deal. This could also help Netflix's stock rebound, as Netflix has lost $170 billion in market value since last September, when it was considered a favorite to buy Warner Bros.
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