Netflix says it won't raise its offer for Warner Bros.

Core Insights - Netflix has decided not to raise its bid for Warner Bros. Discovery, following Paramount's increased offer from $30 to $31 per share for the company [1][2] - Netflix co-CEOs stated that the deal was no longer financially attractive at the price required to match Paramount's bid, leading to a surge of over 9% in Netflix's stock during after-hours trading [2] - Paramount's CEO has been actively pursuing Warner Bros. Discovery, making 10 official offers despite Netflix's initial deal announcement [3] Regulatory Context - Paramount positions itself as a more suitable buyer for Warner Bros. than Netflix, citing concerns over Netflix's potential dominance in the market if it acquires HBO and its iconic IP [7] - Netflix argues that it is not a dominant player due to competition from YouTube, free streaming services, and traditional TV, claiming it would preserve more jobs in Hollywood compared to Paramount [8] - Both companies are seeking support from regulators and political figures, including President Trump, who has expressed mixed sentiments regarding Netflix's market position [9][10] Political Dynamics - President Trump previously indicated that Netflix's acquisition of Warner Bros. could pose a problem but later stated he would allow the Department of Justice to assess the situation [9] - Despite Trump's criticisms of Netflix, the company maintains that its potential acquisition is not politically motivated, with co-CEO Sarandos attending meetings at the White House [11]