Netflix and Warner Bros Merger: A $82.7 Billion Game-Changer

Netflix has made an all-cash offer to acquire Warner Bros Discovery's studio and streaming assets, maintaining an $82.7 billion price tag. The move is intended to surpass Paramount's competitive bid. Warner Bros' board supports the deal, anticipating a shareholder vote by April. Financial certainty and expedited timeline are key advantages.

Netflix has switched to an all-cash offer in its bid to acquire Warner Bros Discovery's studio and streaming assets without modifying the $82.7 billion price, aiming to outmaneuver Paramount's competitive attempts. On Tuesday, a regulatory filing confirmed that the all-cash proposal - valued at $27.75 a share - received unanimous backing from Warner Bros' board.

Both Netflix and Paramount Skydance are contending for Warner Bros due to its premier film and television studios, extensive content library, and major franchises including "Game of Thrones," "Harry Potter," and DC Comics' iconic heroes "Batman" and "Superman." While Paramount devised new terms and launched an aggressive media crusade to present its offer as superior, Warner Bros dismissed the David Ellison-led company's bid.

Netflix plans to fast-track the deal with a special investor meeting expected by April, according to co-CEO Ted Sarandos. The media conglomerate highlighted the cash offer's potential for speed and financial assurance at the stockholder vote. Meanwhile, Netflix shares increased 1.2% pre-market, whereas Paramount saw a 1% decline and Warner Bros remained steady.

(With inputs from agencies.)