Netflix Inc. (NASDAQ:NFLX) has decided to switch to an all-cash offer for the acquisition of Warner Bros Discovery (NASDAQ:WBD) studio and streaming businesses. This decision was made without increasing the $82.7 billion price, effectively countering rival Paramount’s (NYSE:PSKY) efforts.
Netflix’s new all-cash offer for Warner Bros Discovery’s studio and streaming businesses has received unanimous approval from the latter’s board. Both Netflix and Paramount are eyeing Warner Bros for its renowned film and television studios, extensive content library, and major franchises like “Game of Thrones,” “Harry Potter,” and DC Comics’ superheroes Batman and Superman.
Under the revised deal, Netflix will acquire Warner Bros.' film and television studios, content library, and HBO Max streaming service for $27.75 per share in cash, replacing its earlier offer of $23.25 in cash plus $4.50 in Netflix stock.
Battle For Warner Bros Intensifies
This decision by Netflix comes after a series of events in the ongoing battle for Warner Bros Discovery. Earlier this month, Paramount had filed a lawsuit against Warner Bros for not disclosing financial details of its deal with Netflix, following a failed hostile takeover bid.
Paramount CEO David Ellison also warned of launching a proxy fight to replace Warner Bros.' board with directors willing to negotiate with Paramount, saying he is frustrated that the company has refused to engage in talks.
Price Action: Over the past year, Netflix stock climbed 1.18%, as per data from Benzinga Pro. On Monday, the stock edged 0.06% lower to close at $88.00.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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