Netflix Warner Bros Discovery Acquisition Bid Flips to All-Cash to Counter Paramount
Netflix revises its Warner Bros. Discovery acquisition bid to an all-cash offer of $82.7 billion to counter Paramount's rival proposal. Learn about the strategic implications.
Netflix isn't taking any chances. In a move to seal the $82.7 billion deal for Warner Bros. Discovery (WBD), the streaming titan has revised its offer to all-cash. This strategic pivot aims to sideline a persistent $30-per-share bid from Paramount Skydance and provide immediate certainty to nervous shareholders.
Netflix Warner Bros Discovery Acquisition: Terms and Strategy
According to Reuters, Netflix maintained its valuation of $27.75 per share but scrapped the stock component of its previous proposal. The company stated on Tuesday that the new structure "provides greater certainty of value" and is designed to accelerate the shareholder voting process. The acquisition will be funded through a mix of existing cash, new debt, and committed financing.
The Rivalry: Paramount's Ellison-Backed Bid
Paramount hasn't backed down, leveraging a $40 billion guarantee from Oracle co-founder Larry Ellison. Despite the higher headline price of $30 per share, Warner Bros. executives have questioned the long-term viability of a Paramount merger, highlighting its "junk" credit rating and negative free cash flow. Last week, Paramount escalated the conflict by suing WBD for more details on the Netflix offer.
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