Netflix Revisits Warner Bros. Deal with All-Cash Offer

Netflix is revising its $72 billion offer for Warner Bros. Discovery to make it an all-cash transaction, maintaining the original value per share. The simplified deal structure aims to provide greater certainty and expedite shareholder voting. This move is amid a takeover contest with Paramount Skydance.

In a strategic move, Netflix is revising its $72 billion acquisition offer for Warner Bros. Discovery, opting for an all-cash transaction. The initial proposal included both cash and stock, valued at $27.75 per Warner Bros. share, totaling an enterprise value of $82.7 billion when factoring in debt.

According to a joint statement from Netflix and Warner Bros., the revised transaction structure aims to simplify the deal, offering enhanced value certainty for Warner Bros. shareholders. This adjustment is expected to fast-track the shareholder voting process on the acquisition.

Meanwhile, Netflix faces competition from Paramount Skydance, which has signaled an aggressive takeover bid by proposing a new board prior to Warner Bros.' next shareholder meeting. In immediate market reactions, Netflix's stock climbed 1.3%, while Warner Bros. Discovery shares experienced a slight decline.