US EditionReport: Netflix Weighs All-Cash Offer for Warner as Paramount Presses Bid
Netflix aims to simplify its $72 billion deal by switching to all-cash, competing with Paramount’s $77.9 billion hostile bid amid ongoing legal and proxy battles.
- On Tuesday, Netflix discussed converting its deal for Warner Bros. Discovery studios and HBO Max into an all-cash offer, potentially reshaping the takeover battle with Paramount.
- Paramount says cash is king and has pushed a Jan. 21 tender deadline, touting a hostile $30-a-share all-cash offer and suing the WBD board in Delaware Chancery Court for documents.
- Initially, Netflix's proposal included cash and stock for Warner Bros. divisions, while Paramount's $108.4 billion bid was all cash, with Netflix offering $27.75 per share or $23.25 cash plus $4.50 in shares.
- The WBD board last week unanimously rejected Paramount's purchase offer and called the lawsuit meritless, while Paramount announced director nominations and plans for a proxy contest.
- Industry and political scrutiny accompanies a sale expected to take months, as Warner Bros. Discovery warns Paramount's debt-heavy $30-a-share offer remains inadequate amid Hollywood's streaming shift.
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Quick Read Netflix (NFLX) shares fell 28% over six months after Q3’s 15.8% EPS miss driven by a $619M Brazilian tax dispute that crushed operating margin. Netflix pursues an $83B Warner Bros. Discovery acquisition while founder Hastings sold over 40,000 shares and the CFO liquidated holdings. Stock trades at $89 versus Wall Street’s $128 average price target. Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a…
On Thursday, a U.S. judge rejected the company's request to speed up the procedure. Paramount wants to hear from the rival Warner why he prefers the approximately 71 billion euro takeover offer from streaming provider Netflix to the Paramount offer.
Netflix is preparing to launch an integral offer in numbers for Warner Bros' studios and streaming divisions. Discovery, according to a familiarized source with the situation, Reuters. The proposal would represent an important change in the initial structure of the transaction and is aimed at accelerating the sales process, which is expected to last more months.
Netflix would be considering presenting a full cash purchase offer to acquire Warner Bros.'s rights, according to information published this Tuesday by The Wall Street Journal. The initiative would seek to accelerate the acquisition process that the streaming platform started last December.
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