Netflix is reportedly poised to ditch a combination of cash and stock in its proposed $83 billion acquisition bid for Warner Bros Discovery (WBD) in favor of an all-cash offer as it makes a last-ditch effort to seal the deal before a rival hostile bid from Paramount Skydance closes in.
The move, first reported by Bloomberg, is designed to accelerate the acquisition process and make the deal more appealing to WBD shareholders, who have been vocal about their reservations over the combination. The change comes as Netflix's original offer included $23.25 per share in cash, plus stock in the streaming company and equity in WBD's global networks operation β a component that Netflix is not acquiring.
As the US media landscape continues to face intense scrutiny from politicians and industry figures, the deal has sparked concerns over the potential dominance of a single entity controlling nearly half of the streaming market. The tie-up between Netflix and WBD would grant the streaming giant control of prized assets including Warner Bros studios behind Harry Potter, Superman, and Batman franchises, as well as HBO home to Game of Thrones, The White Lotus, and Succession.
Paramount, backed by billionaire Larry Ellison's $40 billion personal guarantee, has been aggressively pursuing its own $108.4 billion takeover bid for WBD, leaving Netflix scrambling to stay ahead. As the battle for control intensifies, Paramount is planning to nominate directors to WBD's board in an effort to sway shareholders against the Netflix deal.
The WBD board had previously advised shareholders to reject Paramount's hostile offer, citing concerns over significant debt financing and arguing that Netflix's original proposal relied on a substantial amount of leverage. Despite this, Paramount remains undeterred, with Ellison personally guaranteeing the takeover bid.
As the stakes continue to rise, both companies are working overtime to secure their preferred outcome. With WBD shares rising 1.6% on Tuesday following reports of Netflix's plans and shares in the streaming giant surging 1%, the battle for control of this massive media conglomerate is poised to reach a fever pitch.
The move, first reported by Bloomberg, is designed to accelerate the acquisition process and make the deal more appealing to WBD shareholders, who have been vocal about their reservations over the combination. The change comes as Netflix's original offer included $23.25 per share in cash, plus stock in the streaming company and equity in WBD's global networks operation β a component that Netflix is not acquiring.
As the US media landscape continues to face intense scrutiny from politicians and industry figures, the deal has sparked concerns over the potential dominance of a single entity controlling nearly half of the streaming market. The tie-up between Netflix and WBD would grant the streaming giant control of prized assets including Warner Bros studios behind Harry Potter, Superman, and Batman franchises, as well as HBO home to Game of Thrones, The White Lotus, and Succession.
Paramount, backed by billionaire Larry Ellison's $40 billion personal guarantee, has been aggressively pursuing its own $108.4 billion takeover bid for WBD, leaving Netflix scrambling to stay ahead. As the battle for control intensifies, Paramount is planning to nominate directors to WBD's board in an effort to sway shareholders against the Netflix deal.
The WBD board had previously advised shareholders to reject Paramount's hostile offer, citing concerns over significant debt financing and arguing that Netflix's original proposal relied on a substantial amount of leverage. Despite this, Paramount remains undeterred, with Ellison personally guaranteeing the takeover bid.
As the stakes continue to rise, both companies are working overtime to secure their preferred outcome. With WBD shares rising 1.6% on Tuesday following reports of Netflix's plans and shares in the streaming giant surging 1%, the battle for control of this massive media conglomerate is poised to reach a fever pitch.