"In the ongoing saga over whether Netflix will acquire Warner Bros. Discovery, the streaming giant is now offering to pay all cash for the deal, revising a previous bid that included a mix of stock with cash, according to a filing from the Securities and Exchange Commission (SEC). On Tuesday, Netflix and Warner Bros. Discovery announced the amended agreement, which simplifies the deal for investors who no longer have to worry about Netflix's fluctuating stock price."
"The news comes as Netflix continues to stave off a hostile takeover bid from rival Skydance-owned Paramount, led by chief executive David Ellison, who has tried to blow up the deal. (Paramount had been offering an all-cash deal.) Warner has repeatedly rebuffed Paramount's offer. "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," Ted Sarandos, co-CEO of Netflix, said in a statement."
Netflix offered to pay all cash to acquire Warner Bros. Discovery, replacing a prior cash-and-stock bid and simplifying deal terms for investors concerned about Netflix's stock volatility; the amended agreement was filed with the SEC and announced by both companies. The acquisition would include Warner Bros. Discovery's movie studio as well as HBO and HBO Max. Netflix's initial proposal valued WBD at $27.75 per share ($23.25 cash, $4.50 in Netflix stock), valuing the company at about $82.7 billion enterprise value. Warner rebuffed Paramount's all-cash approach, and company leaders said the transaction will deliver strong outcomes for stakeholders as markets tracked share-price reactions.
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