Netflix has intensified its takeover push for Warner Bros Discovery by switching to an all-cash offer valued at $82.7 billion, a move aimed at shutting out rival suitor Paramount Skydance and accelerating shareholder approval.
In a regulatory filing on Tuesday, the streaming giant confirmed that the revised bid, priced at $27.75 per share, has received unanimous backing from the Warner Bros Discovery board. While the structure of the deal has changed, the overall valuation remains unchanged.
Netflix and Paramount Skydance have both been vying for Warner Bros Discovery, attracted by its major film and television studios, vast content library and globally recognised franchises including Game of Thrones, Harry Potter and DC Comics characters such as Batman and Superman.
The latest shift to an all-cash proposal appears designed to neutralise Paramount’s competing bid. The David Ellison-led Paramount Skydance consortium has revised its terms in recent weeks and launched an aggressive media campaign to persuade shareholders that its offer represents better value. However, Warner Bros Discovery has so far rebuffed those efforts and declined to comment on Netflix’s updated proposal.
Netflix said Warner Bros Discovery will convene a special shareholders’ meeting to vote on the deal, which is expected to take place by April.
“Our revised all-cash agreement will enable an expedited timeline to a stockholder vote and provide greater financial certainty,” Netflix co-chief executive officer Ted Sarandos said in a statement.
Market reaction was mixed in early trading. Netflix shares rose 0.9 per cent ahead of its quarterly earnings report due after the market close, while Paramount shares fell 1.9 per cent. Warner Bros Discovery stock slipped 0.5 per cent.
Despite the board’s endorsement, some investors believe the contest may not yet be settled. Alex Fitch, a portfolio manager at Harris Oakmark — Warner Bros Discovery’s fifth-largest shareholder with about 96 million shares as of September 30 — said the revised deal only heightens pressure on Paramount.
“This new agreement only ramps up the pressure,” Fitch said. “The changes show that Netflix is serious about winning, and the accelerated shareholder vote means Paramount needs to act with urgency. Now, it is up to Paramount to provide a clearly superior offer if they want to get this done.”
With shareholder approval looming, the battle for control of one of Hollywood’s most powerful content empires appears to be entering a decisive phase.
Boluwatife Enome
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