Netflix has revised its offer for Warner Bros Discovery, switching to an all-cash bid valued at $27.75 per share without increasing the overall $82.7 billion price, as it moves to shut out rival interest from Paramount Skydance.
The updated offer, disclosed in a regulatory filing on Tuesday, has received unanimous backing from the Warner Bros Discovery board. Netflix said the all-cash structure would allow for a faster shareholder vote and provide greater financial certainty to investors.
Both Netflix and Paramount Skydance have been competing to acquire Warner Bros Discovery for its film and television studios, extensive content library and major franchises including Game of Thrones, Harry Potter and DC Comics properties such as Batman and Superman. Paramount has argued that its bid is superior and has stepped up efforts to persuade shareholders, but Warner Bros Discovery has continued to favour Netflix’s proposal.
Netflix co-CEO Ted Sarandos said the revised deal would enable an expedited timeline to a shareholder vote, which is expected to take place by April. Shares of Netflix rose slightly in early trading, while Paramount and Warner Bros Discovery shares dipped.
The new offer replaces Netflix’s earlier cash-and-stock proposal, which had been partly undermined by a decline in Netflix’s share price since the deal was announced in December. Warner Bros Discovery said the fixed cash consideration offers certainty of value and immediate liquidity for shareholders.
The board also reiterated its position that the Netflix deal remains superior to Paramount Skydance’s $30-per-share all-cash bid, partly because Warner Bros Discovery investors would retain a stake in a planned spin-off, Discovery Global, which will house cable television assets such as CNN, TNT Sports and the Discovery+ streaming service.
Paramount’s tender offer is set to expire on January 21, and analysts say the bidding contest may not yet be over, though pressure is mounting on Paramount to improve its proposal. Any deal is also expected to face regulatory scrutiny amid broader concerns about consolidation in the media industry.
