Netflix and Warner Bros. Discovery on Tuesday said Netflix's offer to merge Warner Bros.' studio and streaming business will now be all cash, rather than cash and stock, UNN reports, citing Axios.
Details
The companies say the new structure is simpler and that the deal can close faster — an attempt to quickly finalize the deal as Paramount Skydance ramps up pressure with its own hostile bid for WBD.
WBD said in December it had agreed to a deal to sell its studio and streaming business to Netflix for cash and stock at $27.75 per WBD share.
The new all-cash offer has the same price. Netflix said it would finance the cash offer with cash on hand, as well as credit lines and financing commitments.
Paramount's all-cash offer, which included all of WBD, not just the studio and streaming assets, valued WBD at $30 per share.
WBD cited risks associated with the financing structure of Paramount's offer, rejecting its proposals.
Paramount, arguing its offer was better for shareholders, began taking legal action against WBD in its quest to acquire the asset.
Paramount Sues Warner Bros. Over Netflix Deal13.01.26, 17:09 • [views_60254]
Last week, Paramount filed a lawsuit to compel the company to disclose "essential information" about the bidding process so that shareholders could "make an informed decision about whether to tender their shares in our offer."
It also proposed a proxy fight against the Warner Bros. Discovery board of directors, saying it intends to nominate director candidates in a few weeks.
A Delaware state judge on Thursday denied Paramount's request to expedite its lawsuit against Warner Bros. Discovery, arguing that the media giant had not suffered irreparable harm from WBD.
In a statement, Warner Bros. Discovery said the lawsuit "was another frivolous attempt to distract, and the judge saw through it."
"Despite numerous opportunities, Paramount Skydance continues to offer a deal that our board of directors unanimously determined was not superior to the Netflix merger agreement," the statement said.
The revised deal structure is expected to allow WBD shareholders to vote on the proposed deal by April of this year, Warner Bros. said in a statement.