"The streaming company had originally secured the unanimous backing of the WBD board last month with a cash-and-shares proposal that valued the business at $27.75 a share. The two companies said the switch to an all-cash offer a plan first reported last week at the same valuation as the original deal simplifies the transaction structure, provides greater certainty of value for WBD stockholders, and accelerates the path to a WBD stockholder vote."
"Our revised all-cash agreement will enable an expedited timeline to a stockholder vote and provide greater financial certainty at $27.75 per share in cash, plus the value from the planned separation of Discovery Global, said Ted Sarandos, the streamer's co-chief executive. The WBD Board continues to support and unanimously recommend our transaction, and we are confident that it will deliver the best outcome for stockholders, consumers, creators and the broader entertainment community."
"Paramount is continuing to pursue its own $108.4bn cash takeover of the whole of WBD, which it has taken hostile to try to get investors to accept and override the board's agreement with Netflix. Last week, Paramount said it planned to nominate directors to WBD's board to vote against the approval of the Netflix deal, and filed a lawsuit seeking disclosure of financial information related to the agreement."
Netflix converted its $82.7bn cash-and-shares proposal for Warner Bros Discovery into an all-cash offer at the same $27.75-per-share valuation to simplify the transaction and speed completion. The all-cash structure aims to provide greater certainty of value for WBD stockholders and to enable a stockholder vote as soon as April. Netflix will not buy WBD's global networks operation, which will be spun off; WBD investors will receive shares in that separate company including CNN, Cartoon Network and the Discovery Channel. The WBD board unanimously recommends the transaction. Paramount is pursuing a rival $108.4bn hostile cash takeover and has filed legal actions.
Read at www.theguardian.com
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