"Netflix is reportedly preparing to switch to an all-cash offer to seal its takeover of the studios and streaming businesses of Warner Bros Discovery (WBD), as it tries to speed up the deal and fend off a rival hostile bid from Paramount Skydance. The changes to Netflix's $83bn (62bn) offer, first reported by Bloomberg, are designed to accelerate the acquisition, which is expected to take months to conclude, and make it more palatable for WBD shareholders."
"The tie-up between Netflix and WBD has faced a backlash from US politicians and figures in the entertainment industry, with some voicing concerns that the resulting media giant would control almost half of the streaming market. Under the Netflix deal, the streaming company's vast library would take control of WBD's prize assets including Warner Bros, the studio behind franchises including Harry Potter, Superman and Batman, as well as HBO, home to shows including Game of Thrones, The White Lotus and Succession."
"It comes as Paramount, controlled by the billionaire Ellison family, is attempting to secure its own $108.4bn takeover of WBD. Its bid has been backstopped by a personal $40bn guarantee by Larry Ellison, a co-founder of Oracle. WBD has previously told its shareholders to reject the inadequate hostile takeover bid by Paramount and has argued that its offer relies on a significant amount of debt financing."
"Amid an extraordinary corporate battle, Paramount is planning to nominate directors to WBD's board to vote against the Netflix deal. Under the terms of Netflix's original deal, WBD shareholders were due $23.25 a share in cash as well as stock in the streaming company and equity in WBD's global networks operation which Netflix is not buying that includes CNN, the Cartoon Network and the Discovery Channel. Warner Bros formally put itself up for sale in October after receiving interest from several parties."
Netflix is preparing to switch its $83bn offer for Warner Bros Discovery to an all-cash bid to speed up the acquisition and appeal to WBD shareholders. The change aims to accelerate a deal expected to take months and to counter a rival hostile offer from Paramount Skydance. Concern has arisen from US politicians and industry figures that a combined Netflix-WBD would control nearly half of the streaming market. Netflix's proposed acquisition would fold Warner Bros studios and HBO into its library. Paramount has mounted a competing $108.4bn bid backed by Larry Ellison’s $40bn guarantee and plans board nominations.
Read at www.theguardian.com
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