Netflix has dropped its proposal to buy Warner Bros Discovery after the studio announced Paramount's latest bid was "superior".
The deal worth $110billion (£81.7billion) will hand control of one of Hollywood's most storied studios alongside its films and media networks to Paramount Skydance.
Warner Bros, which put itself up for sale last year, had a greed a takeover deal with Netflix for certain assets worth around $82billion (£61billion), including debt.
Paramount then made a rival proposal, which was rebuffed by Warner Bros, but an increased offer was made earlier this week, boosted by $1 per share.
Netflix executives said they chose not to match the improved terms, arguing the transaction was “no longer financially attractive” at the higher price.
"The transaction we negotiated would have created shareholder value with a clear path to regulatory approval," Netflix co-chief executives Ted Sarandos and Greg Peters said in a statement. "However, we've always been disciplined."
"This transaction was always a 'nice to have' at the right price, not a 'must have' at any price," the Netflix executives added.
FSTE100
The UK's flagship share index, the FTSE 100, was up 55-points at 10,860 shortly after opening this morning.
Brent crude oil futures were up 0.61% at $70.85 a barrel.
Companies reporting today
- International Consolidated Airlines Group* - Full Year Results
- Just Group - Full Year Results
- ME Group International - Full Year Results
- Melrose* - Full Year Results
- Pearson - Full Year Results
- Rathbones - Full Year Results
- Renewables Infrastructure Group - Full Year Results
- Rightmove - Full Year Results
- Tritax Big Box REIT* - Full Year Results