Netflix Eyes All-Cash $83B Deal for Warner Bros

By Staff, Agencies

Netflix is reportedly shifting to an all-cash offer to secure its takeover of Warner Bros Discovery [WBD], aiming to accelerate the deal and block a hostile bid from Paramount Skydance.

The changes to Netflix’s $83bn [£62bn] offer, first reported by Bloomberg, are designed to accelerate the acquisition, which is expected to take months to conclude, and make it more palatable for WBD shareholders.

The tie-up between Netflix and WBD has faced a backlash from US politicians and figures in the entertainment industry, with some voicing concerns that the resulting media giant would control almost half of the streaming market.

The Netflix deal would give it control of WBD’s key assets, including Warner Bros and HBO, home to franchises like Harry Potter and shows like Game of Thrones.

Paramount, backed by Larry Ellison’s $40B guarantee, is also pursuing a $108.4B WBD takeover.

WBD urged shareholders to reject Paramount’s ‘inadequate’ bid, citing its heavy reliance on debt financing.

Amid an extraordinary corporate battle, Paramount is planning to nominate directors to WBD’s board to vote against the Netflix deal.

Netflix’s original deal offered WBD shareholders $23.25 per share in cash, plus Netflix stock and equity in WBD’s global networks, including CNN and Cartoon Network.

Warner Bros went up for sale in October and agreed to a Netflix deal in December after rival bids from Paramount and Comcast.

Since making the agreement with Netflix, WBD has faced repeated attempts by Paramount to overturn the deal and accept its offer.

WBD shares closed 1.6% higher on Tuesday after reports of Netflix’s plans, while shares in Netflix rose 1%.