"Back in December, Netflix struck a cash and stock deal with Warner valued at $27.75 per share, giving it a total enterprise value of $82.7 billion, including debt. But on Tuesday, the companies announced that they would be revising the transaction to simplify its structure, provide more certainty of value for Warner stockholders and speed up the path to a shareholder vote - which they said could arrive by April."
"Unlike Netflix, Paramount wants to acquire Warner's entire company - including networks like CNN and Discovery - and went straight to shareholders with all cash, $77.9 billion offer last month. Warner stockholders have until 5 p.m. ET Wednesday to tender their shares in support of Paramount's bid, which has an enterprise value of $108 billion including debt. But that deadline could be pushed back further."
Netflix offered to buy Warner Bros. Discovery's studio and streaming business in an all-cash transaction to win Warner shareholders for a $72 billion merger and counter Paramount's hostile bid. The revised agreement keeps a $27.75-per-share valuation that had been part of an earlier cash-and-stock deal implying an $82.7 billion enterprise value including debt. The simplified all-cash structure aims to provide more certainty for Warner stockholders and accelerate a shareholder vote that could occur by April. Warner stockholders will also receive value in newly separated Discovery Global shares. Warner's board and CEO David Zaslav back the transaction. Paramount submitted an all-cash $77.9 billion offer for the entire company and may extend its tender deadline or pursue a proxy fight.
Read at ABC7 Los Angeles
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