Paramount squeezes out Netflix with Gulf-backed bid for Warner

A $111 billion Gulf-backed bid for Hollywood studio Warner Bros. Discovery appears to have prevailed after streaming giant Netflix dropped out of the fight.

Warner Bros. CEO David Zaslav said the $31-a-share offer from David Ellison’s Paramount Skydance would “create tremendous value for our shareholders.”

Paramount has aggressively pursued Warner Bros., launching multiple successive offers backed by various configurations of Gulf sovereign wealth funds, including the Qatar Investment Authority and Saudi Arabia’s Public Investment Fund.

In December the newly-formed Abu Dhabi state investment vehicle L’imad Holding Co. joined the fray by backing a $108 billion hostile offer. L’imad’s total commitment under the revised offer is not yet known.

Netflix said in a statement that it pulled out of the bidding because at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive.”

Paramount will still have to pass government hurdles before the sale can proceed. The US Senate Judiciary Committee scheduled a hearing for March 4 to examine the Warner Bros. sale following a hearing earlier this month, with Ellison invited to attend.