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Netflix Weighs All-Cash Bid for Warner Bros. Discovery as Paramount Presses Hostile Offer

Such a move could speed a shareholder vote by removing stock-related disclosures.

Overview

  • Bloomberg reported that Netflix is considering replacing its cash-and-stock deal with an all-cash offer for Warner Bros. Discovery, and both companies declined to comment to Investopedia.
  • If the offer switches to cash, CNBC reported the shareholder vote could move up to late February rather than spring or summer under the current structure.
  • UPI reported the existing Netflix agreement values WBD at $27.75 per share, with an equity value of about $72 billion and an enterprise value near $82.7 billion.
  • Paramount Skydance intensified its challenge this week with a lawsuit seeking details on WBD’s process and said it will nominate directors and solicit votes against the Netflix deal.
  • Investopedia noted share moves were choppy on Wednesday, with Netflix down more than 1% at its lowest since early December and Paramount near recent lows, as some investors welcomed the bidding contest.