Netflix drops Warner Bros bid in favor of all-cash offer to Paramount

Warner Bros Discovery’s Studio and Streaming Assets Up for Sale

Netflix has made a new all-cash bid of $27.75 per share for Warner Bros Discovery’s studio and streaming assets, as part of its ongoing effort to acquire the Hollywood giant. The offer is being considered by the company’s board, which has unanimous support for the deal.

The move comes after Paramount Skydance, another major bidder, had been campaigning that its own bid was superior to Netflix’s. However, Warner Bros Discovery has chosen not to pursue a cash-and-stock bid from Paramount, instead opting for an all-cash offer.

Warner Bros Discovery is seeking $82.7 billion for the acquisition of its studio and streaming assets, which include leading film and television studios, extensive content libraries, and major franchises such as Game of Thrones, Harry Potter, and DC Comics’ superheroes Batman and Superman.

The company’s board has maintained that the Netflix merger deal is superior to Paramount Skydance’s $30-per-share cash bid. Warner Bros Discovery’s advisers have valued its separate spin-off assets at a range of $1.33 to $6.86 per share.

Warner Bros Discovery will hold a special investor meeting to vote on the Netflix deal, with the streaming pioneer stating that the meeting is expected to be held by April. The company has also announced that it will provide greater financial certainty through an expedited timeline for the stockholder vote.

Shares of Netflix have risen 0.7 percent in response to the news, while Warner Bros Discovery’s shares have increased 0.7 percent and Paramount Skydance’s shares have fallen 1.1 percent.

Source: Al Jazeera