Netflix has updated its bid for Warner Bros. Discovery (WBD), shifting the acquisition terms to an all-cash offer. This change replaces the initial cash and stock agreement, aiming to streamline the sale of WBD’s studios and streaming businesses amidst pressure from rival bidder Paramount.
In a statement, Ted Sarandos, co-CEO of Netflix, expressed confidence in the revised agreement, stating, “Our revised all-cash deal at $27.75 per share in cash, along with the planned separation of Discovery Global, offers an expedited timeline to a stockholder vote and financial certainty.”
The amended transaction, approved by both Netflix’s and WBD’s boards, will be financed through a mix of cash, credit, and financing. However, the completion of the overall acquisition deal remains contingent upon regulatory and WBD shareholder approvals.
Initially, the transaction involved WBD shareholders receiving a combination of cash and Netflix stock. However, with Netflix’s share price falling below a set threshold, Paramount made a competitive all-cash offer, criticizing the reliance on equity and cash in the Netflix agreement.
Rumors of these changes surfaced following Paramount’s takeover attempts, with WBD rejecting their advances and now facing legal action. The tech industry continues to closely monitor Netflix’s navigation of this acquisition landscape.
Source: The Verge