In its statement, Netflix indicated that "the price necessary to match the offer from Paramount Skydance makes the deal financially unfeasible."
Paramount Skydance offered to acquire Warner Bros. for $31 per share, with the terms of the deal including covering a $2.8 billion penalty that Warner Bros. would have to pay Netflix in the event of terminating the previous agreement.
After announcing its decision to cease the fight for Warner Bros., Netflix's shares rose by 8%, according to Bloomberg data.
The battle between Paramount and Netflix for Warner Bros. assets lasted several months. On December 5, Netflix announced its intention to acquire Warner Bros. and HBO Max for $82.7 billion (at $27.75 per share). Paramount, in turn, initially offered $108 billion ($30 per share) for the full acquisition of Warner Bros., including its cable channels (CNN, TNT Sports, and Discovery), and then increased its offer to $31 per share.
