Netflix has revised its takeover bid for Warner Bros Discovery’s studio and streaming businesses, switching to an all-cash offer while keeping the overall valuation unchanged at $82.7 billion. The move is aimed at shutting out rival bidder Paramount, which has been pushing an alternative deal.
Under the revised proposal, Netflix will pay $27.75 per share in cash, a structure that has received unanimous approval from Warner Bros Discovery’s board, according to a regulatory filing released on Tuesday.
Both Netflix and Paramount Skydance have been competing for Warner Bros Discovery, attracted by its major film and television studios, vast content library and high-value franchises such as Game of Thrones, Harry Potter and DC Comics characters including Batman and Superman.
Paramount has recently revised its own bid and launched an aggressive media campaign to persuade shareholders that its offer is more attractive. However, Warner Bros Discovery has rejected those efforts. Netflix co-CEO Ted Sarandos said the all-cash deal would allow for a faster shareholder vote and offer greater financial certainty. Our revised all-cash agreement enables an expedited timeline to a stockholder vote and delivers greater financial certainty,” Sarandos said.
Ahead of Netflix’s quarterly earnings report, its shares rose 1.2 per cent in pre-market trading. Paramount shares fell 1 per cent, while Warner Bros Discovery stock was little changed. Netflix shares have dropped nearly 15 per cent since the merger was announced on December 5, closing at $88 on Friday, well below the $97.91 floor price of the original bid. Paramount has pointed to this decline to argue that its offer is superior.
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