Netflix Seals All-Cash Deal for Warner Bros to Outpace Paramount

Netflix has shifted to an all-cash offer to acquire Warner Bros Discovery's studios and streaming assets, countering Paramount's competing bids. The $82.7 billion deal aims to close soon with Warner Bros board's support. The acquisition plan faces regulatory hurdles and an impending shareholder vote.

In a decisive move, Netflix has transitioned to an all-cash offer for Warner Bros Discovery's studio and streaming assets, maintaining its original price of $82.7 billion amidst stiff competition from Paramount.

The Warner Bros board supports Netflix's $27.75 per share offer, according to a Tuesday regulatory filing. Both Netflix and Paramount covet Warner Bros for its powerful franchises, including "Game of Thrones" and DC superheroes. Although Paramount has been aggressively promoting its deal as superior, Warner Bros remains firm on Netflix's proposal.

Warner Bros plans a special shareholder meeting by April to vote on the Netflix deal. However, regulatory concerns over media consolidation loom, despite the financial backing of Warner Bros' board and the strategic appeal of Netflix's investment-grade credit versus Paramount's junk status.

(With inputs from agencies.)