"Netflix upped its offer for Warner Brothers Discovery in a move designed to outmuscle Paramount's hostile takeover effort by rewriting its $83 billion bid as an all-cash offer. The revised proposal, announced on Tuesday, strips out the stock component of Netflix's original December agreement and replaces it with cash alone, a shift aimed squarely at calming shareholder nerves over market volatility while tightening the pressure on Paramount, whose rival bid has already been rejected by the WBD board as riskier."
"Today's revised merger agreement brings us even closer to combining two of the greatest storytelling companies in the world, WBD chief executive David Zaslav said, according to The New York Times. Netflix co-chief executive Ted Sarandos echoed that logic, saying the all-cash structure offered greater financial certainty for shareholders. Netflix is buying the streaming and studios business, while WBD spins off its cable networks, including CNN and TNT, into a separate publicly traded company."
Netflix converted the stock component of its original $83 billion proposal into an all-cash offer to reduce shareholder concerns about market volatility and increase financial certainty. The move intensifies pressure on Paramount's competing takeover bid, which the WBD board has judged riskier. Netflix plans to acquire the streaming and studios operations while Warner Bros. Discovery will spin off cable networks such as CNN and TNT into a separate publicly traded company. Paramount continues to hold a $108 billion all-in proposal, roughly $30 per share, and has revised its structure without raising its headline price. The Department of Justice could have final regulatory authority over the deal.
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