Netflix Backs Out After Paramount’s Offer in Warner Bid

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Last December, Netflix appeared poised to finalize its acquisition of Warner Bros. However, after sustained efforts from Paramount, including successive increases to its offer, Netflix withdrew. For the two months following Netflix’s initial offer, Warner Bros.’ board of directors reportedly ignored Paramount’s requests to reopen negotiations to honor the original agreement. Earlier this month, Netflix allowed negotiations to resume. During this period, Paramount presented a new offer, which Warner Bros.’ directors considered superior to Netflix’s. Netflix’s board considered a new offer but ultimately declined to match Paramount Skydance’s revised bid for Warner Bros. Discovery’s assets. According to The Hollywood Reporter, Netflix co-CEOs Ted Sarandos and Greg Peters believed an agreement could strengthen Warner Bros.’ brand and preserve U.S. jobs but were unwilling to exceed a certain valuation for the acquisition. Ted Sarandos also attended meetings at the White House to discuss the potential partnership. Ultimately, Paramount agreed to cover the $2.8 billion breakup fee that Netflix would have been required to pay if the deal fell through.

Warner Bros.’ Shareholders Await Approval for Paramount’s $108.4B Acquisition Offer

The next step involves Warner Bros.’ directors presenting Paramount’s proposal to shareholders for approval, followed by review from U.S. government antitrust authorities. As part of the agreement, Paramount would pay Netflix $2.8 billion—the breakup fee from the original streaming deal. If the acquisition fails to gain government approval, Warner Bros. would receive $7 billion in compensation from Paramount. A key difference between the proposals was the scope of the acquisition: Netflix sought only Warner Bros.’ film and television operations, while Paramount aimed to acquire the entire company, including its video game division and news channels like CNN. Netflix’s initial proposal involved buying Warner Bros.’ film and TV studios in Burbank for $27.75 per share. On February 23, Paramount countered with a $31 per share cash offer for HBO, the Burbank studios, and cable channels like CNN and HGTV. Paramount also offered $45.7 billion in equity personally guaranteed by Oracle co-founder Larry Ellison. The revised Paramount offer is valued at approximately $108.4 billion, significantly higher than Netflix’s $82.7 billion bid. [Include call to action, such as crowdfunding campaign, social media links, and disclaimer, here.] With Netflix out of the running, Warner Bros. will now consider Paramount’s acquisition offer.

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In other gaming news, mark your calendars for March 14th! Jonathan Dubinski has just announced the second edition of Dev Game Show in São Paulo. Taking place on March 14th, this free event is a must-attend for any gaming enthusiast eager to explore a diverse range of indie titles from Brazilian developers. From 2D survival horror and shoot ’em ups to retro console gems, there’s something for everyone. So why not head over to Jonathan’s post Brazilian Game Developers Gather for Free Event in São Paulo and see what all the fuss is about? And remember, entry is free with a small donation of non-perishable food or pet supplies for charity. In our ongoing effort to make learning engaging and relevant, we’re thrilled to share a recent project that’s making waves in digital security education. Author Carlos Mendoza highlights the innovative work of young apprentices from Prototipando a Quebrada, in partnership with the Internet Legacy Project at UFSC, resulting in an interactive 2D adventure game called “Lelê and the Threats in the Metaverse”. This educational tool is designed to educate youth about digital security in a fun and engaging way, exploring topics like non-consensual exposure and social isolation. Check it out here UFSC Project Launches Educational Game on Digital Security for Youth and Teenagers. Meanwhile, in other superhero news, Carlos Mendoza also delves into Sony’s plans for their Spider-Man universe. In his recent post published on February 25th, he shares insights from Tom Rothman’s podcast interview about a potential reboot of the franchise with new actors and stories. Despite past standalone character struggles like Kraven The Hunter and Morbius, Sony seems eager to revive the universe, possibly starting with an adaptation of “Spider-Man: Into the Spider-Verse” centered around Miles Morales. Be sure to check it out here Sony to Reset Spider-Man Movies Universe Without Spider-Man.