Posted in: Movies, Netflix, Opinion, Paramount+, TV, TV | Tagged: netflix, paramount, Warner Bros

Netflix Is Now Officially $2.8B Richer, Thanks to Paramount/WBD Deal

Netflix is now $2.8 billion richer after refusing to raise its Warner Bros. Discovery offer, clearing the way for David Ellison's Paramount.

While Warner Bros. Discovery (WBD) CEO David Zaslav was trying to reassure the troops that its potential merger with David Ellison's Paramount Skydance was a good thing (more on that below), Netflix is actually doing quite well for itself. Along with getting a whole lot of love from Wall Street, the streaming service is now $2.8 billion richer, courtesy of Paramount Skydance. In its SEC filing, Netflix noted that WBD "provided notice to Netflix that it had terminated the Merger Agreement in accordance with its terms in order to enter into an Agreement and Plan of Merger with PSKY in respect of such Company Superior Proposal." In the streamer's original agreement with WBD, the multi-billion-dollar fee was to be paid by WBD to Netflix should the agreement be terminated. With that scenario becoming a reality on Thursday, Paramount Skydance stepped in to cover the fee.

Earlier today, Zaslav was reportedly joined by Chief Revenue and Strategy Officer Bruce Campbell and CFO Gunnar Wiedenfels for a town hall meeting for WBD employees earlier today. Based on a leaked audio recording shared with Business Insider), Zaslav claimed that WBD is "the envy of all of the industry," adding that he thought WBD and Paramount "can be a great company. We're getting bigger, and we're getting stronger." The man who botched WBD's NBA deal noted that the deal with Ellison "all happened very quickly," and that it "feels a little whiplash-y," with the WBD board still "getting our bearings."

As for why the deal needed to happen, Zaslav explained that Paramount was key to the company's survival (just as he did when Netflix was still in play). "If Warner Bros. is going to survive, then we needed to be bigger, and we needed to be global," Zaslav argued, adding without offering concrete examples that "some of these companies are getting so big that they can just run us over." As for the regulatory approval process, Zaslave estimates it could take at least 6 to 12 months, if it happens. "The deal may not close," Zaslav noted. "If it doesn't close, we get $7 billion, and we get back to work."

Enjoyed this? Please share on social media!

Stay up-to-date and support the site by following Bleeding Cool on Google News today!