Netflix likely to modify the offer of Warner Brothers Discovery The all-cash bid was made, CNBC’s David Faber reported Wednesday.
In December, Netflix reached an agreement to acquire WBD’s streaming platform HBO Max and Warner Bros. movie studio for cash and stock. The transaction currently values WBD stock at $27.75 per share. This brings the transaction’s capital value to $72 billion and total enterprise value to approximately $82.7 billion.
Bloomberg first reported this week that Netflix was considering adjusting its offer to be all-cash.
Faber reported, citing sources familiar with the matter, that the revised proposal would allow WBD shareholders to vote to approve the proposal on a more expedited schedule.
Under the current deal, shareholders are expected to vote on the deal in the spring or early summer, Faber reported. Faber added that transactions structured in stock typically require more financial and accounting documents to be issued as part of seeking approval, which takes more time and costs.
If Netflix makes an all-cash offer, a shareholder vote could be moved up to late February or early March at the earliest, Faber reported.
The changes will be as follows paramount skydance continues its hostile push to acquire all of Warner Bros. Discovery’s operations.
Earlier this week, Paramount filed a lawsuit against Warner Bros. Discovery and CEO David Zaslav, seeking more information about why the company’s board continues to reject its $30 per share offer in favor of Netflix.
Paramount has repeatedly maintained that its deal offers superior value given the estimated value of Warner Bros. Discovery’s television network. It also revised its bid to solidify government support. oracle Co-founder and billionaire Larry Ellison is the father of Paramount CEO David Ellison.
