Netflix has boosted its offer for media giant Warner Bros Discovery (WBD) as it seeks to fend off a hostile takeover from entertainment conglomerate Paramount.
The streaming giant is now offering to pay cash, not just Netflix shares, in an attempt to improve the attractiveness of its offer.
The total value of the deal, $82.7bn (£61.4bn), is unchanged, but now shareholders will receive cash rather than a part ownership of Netflix.
The amount each WBD shareholder would receive is also unchanged at $27.75 (£20.63) per WBD share. The value price per share means Netflix’s offer equates to $72bn (£53.50bn), but the deal gives the assets a total value of $82.7bn.
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Such an offer “simplifies” the purchase, “provides greater certainty of value” for WBD stockholders, and an “expedited timeline” for WBD stockholders to vote on Netflix’s proposal, according to a statement from Netflix and WBD.
It makes it clearer what each stockholder will get when the transaction closes, as Netflix’s share price has fallen since it announced the merger plans.
A vote could take place by April, the statement said.
Paramount, which launched a hostile takeover bid for WBD, had gone over the heads of the WBD board, directly to shareholders and offered $30 (£22.30) cash for each share.
The Netflix offer to buy the streaming portion of WBD’s business was unanimously recommended to shareholders by the WBD board, while the Paramount Skydance offer has been rejected.
Even if accepted by the shareholders, any deal is subject to regulatory approval.
Why does it matter?
A merger of WBD and…
