(RTTNews) - Netflix, Inc. (NFLX) Thursday announced that it has declined to raise its take over offer for Warner Bros. Discovery Inc. (WBD).
The company said it had earlier received notice from Warner Bros. that its Board of Directors has determined Paramount Skydance's (PSKY) latest proposal constitutes a "Superior Proposal" under the terms of its existing merger deal with Netflix.
In response, Netflix stated, "The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid.... We believe we would have been strong stewards of Warner Bros.' iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the U.S. But this transaction was always a 'nice to have' at the right price, not a 'must have' at any price."
Netflix added that its business is strong and growing organically, and that it plans to invest around $20 billion in quality films and series. The firm also aims to expand its entertaining offering, and to resume share repurchase program.
In the overnight trading, Netflix shares were gaining around 9.4 percent to trade at $92.53 after closing Thursday's regular trading 2.3 percent higher.
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