Netflix Withdraws Bid For AEW Broadcast Partner Warner Bros Discovery, Paramount To Acquire

Though the path once seemed clear for Netflix to acquire Warner Bros. Discovery, the streaming giant has announced that they're bowing out of the bidding war with Paramount after the company raised its offer (via CNBC). Assuming the acquisition clears federal regulatory concerns, WBD will soon be under the same corporate umbrella that contains CBS, Pluto TV, and the streaming rights for the UFC.

All it took for Netflix to back off was Paramount raising its offer from $30 to $31 per share. Netflix's offer was inferior even to Paramount's previous offer, but the latest increase was enough to tip the pot in the legacy company's favor. Unlike the proposed Netflix deal, Paramount's acquisition of WBD will include all of its assets, including its TV networks on the Discovery side.

As a result of the WBD-Netflix deal falling apart, WBD owes Netflix a breakup fee payment of $2.8 billion, which Paramount is reportedly set to cover. In Paramount's latest offer, there is a breakup fee of $7 billion that Paramount would be owed if this deal falls through.

It's still not clear how this acquisition could affect the pro wrestling landscape, especially as Paramount's plans for HBO Max have yet to be revealed. While Netflix CEO Ted Sarandos had promised to keep his streaming platform separate from WBD's, Paramount CEO David Ellison has not said the same.

Paramount Plus is currently the streaming home for the UFC, WWE's TKO sister company. Meanwhile, AEW programming streams on HBO Max and broadcasts on TNT and TBS, and WBD is reported to own a small slice of AEW.