Netflix (NFLX.US) withdrew from the acquisition battle for Warner Bros. Discovery (WBD.US), clearing the way for competitor Paramount Skydance (PSKY.US) to acquire Warner Bros. Discovery for US$111 billion, according to foreign media.

Following the news, Netflix's share price shot up 8.8% to US$92.03 in after-hours trading session, while Paramount Skydance swelled 5.9% to US$11.84 in after-hours trading session. Warner Bros. Discovery waned 1.28% to US$28.44.

Netflix issued a statement saying that its original agreement with Warner Bros. Discovery could have created shareholder value, and had a clear regulatory approval path. However, matching Paramount Skydance's latest offer would render the deal financially unattractive, leading to the decision to abandon the acquisition.

Under the terms of Paramount Skydance's deal, Paramount Skydance will pay Warner Bros. Discovery US$2.8 billion as compensation for terminating the agreement with Netflix. If the deal fails to receive regulatory approval, Paramount Skydance will also pay Warner Bros. Discovery US$7 billion.
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AASTOCKS Financial News
Website: www.aastocks.com

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