Warner Bros., which started the sales process last year, said in a statement on Thursday that Paramount’s latest offer was more advantageous than Netflix’s.
Netflix executives stated that the deal had lost its financial appeal at the current price and announced that they would not increase the offer.
When this acquisition process is completed, control of the giant studio as well as its affiliated film and media networks will change hands and the media world will experience a significant change process.
PARAMOUNT INCREASED ITS OFFER
Paramount strengthened its hand by increasing its buyout offer by $1 per share. Netflix co-CEOs Ted Sarandos and Greg Peters said in their statement that the transaction they negotiated would create shareholder value, but they always acted with discipline.
Managers emphasized that this transaction is not an obligation to be made at every price, but a move planned to be made at the right price.
The development in question will reshape Hollywood if approved by regulatory authorities. This situation will also have serious effects on the future of CNN, one of the largest news brands in the USA.
TRUMP AND CNN DEBATE
CNN frequently clashes with Donald Trump over his news policies. In his statement last December, Trump argued that CNN should be sold as part of any Warner Bros deal.
Criticizing the channel management, Trump stated that the current staff should not continue to manage the network. As the deal reached its finalization stage, CNN CEO Mark Thompson noted in his email to employees that it was too early to draw firm conclusions about the future.
NEW ERA IN THE MEDIA INDUSTRY
In December, Warner Bros. reached an agreement with Netflix for some of its assets. But Paramount, backed by tech billionaire Larry Ellison and run by his son David Ellison, has submitted a rival bid with the aim of becoming a more influential force in Hollywood.
David Ellison stated that they welcomed the Warner Bros board’s acceptance of Paramount’s improved offer and said that this move would bring certainty and speed to shareholders.
If the deal is approved, Paramount; It will add HBO Max subscribers to its portfolio and also acquire ownership of CNN, Food Network and several sports channels. Paramount’s current portfolio includes brands such as Nickelodeon, CBS and Comedy Central.
