With Warner Bros. approaching Discovery With its massive new deal, Netflix now finds itself $2.8 billion richer.
The streaming giant confirmed on Friday that Paramount has paid the $2.8 billion fee that WBD was obligated to pay in connection with the termination of the signed deal. With the fees paid, the Netflix deal favors Warner Bros. It’s officially over.
Netflix revealed the cancellation of the deal and payment of the fees in an SEC filing on Friday.
The revelation comes after Paramount and WBD engaged in extensive talks on Friday to try to complete their deal. On Thursday, WBD announced that it had determined that Paramount’s offer was superior to Netflix’s, giving Netflix four days to respond. It took less than an hour for Netflix to tell WBD that it would not be raising its offer, and that it would exit the process, effectively handing the keys to David Ellison and Paramount.
Naturally, Netflix now finds itself with roughly $3 billion more on its balance sheet to play with at the same time that two of its competitors will be in integration mode, which could give it an opportunity to steal some big projects and continue pursuing its aggressive streaming agenda. It can also choose to participate in other mergers and acquisitions, although the company has not historically done so.
“This year, we will invest nearly $20 billion in high-quality films and series and expand our entertainment offerings,” co-CEOs Ted Sarandos and Greg Peters said Thursday.
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