Previously, on the Warner Bros. purchase…
Last week on the ongoing drama, it was said that Netflix was preparing to make an all-cash bid for the purchase of Warner Bros. Under the original agreement, Warner Bros. Discovery shareholders were set to receive $23.25 in cash and $4.50 in Netflix common stock for each share of WBD outstanding at the time of closing. However, since news of the deal first broke last month, Netflix’s stock has fallen by more than 12%, complicating the stock-heavy portion of the offer. In response, the shift to an all-cash proposal appears to have reassured investors, with Netflix shares ticking up slightly following the news.
Today, on the Warner Bros. purchase…
According to Deadline, Netflix has now officially switched their offer to an all-cash bid in the deal made with Warner Bros. The new offer would value Warner Bros. at $27.75 per share and removes the $4.50 Netflix stock element. This was the part of the agreement that beat out Paramount, much to that studio’s chagrin, and the company would do its damnedest to overtake the purchase in a hostile manner. Warner Bros. and Netflix have both said that the agreement “provides enhanced certainty” for Warner’s shareholders by “eliminating market-based variability.” The new agreement, which is still worth the previous $82.7 billion, is also likely what led to the shareholders move faster to a vote on the transaction – by April 2026.
David Zaslav of WBD has stated, “Today’s revised merger agreement brings us even closer to combining two of the greatest storytelling companies in the world and with it even more people enjoying the entertainment they love to watch the most.” He continues, “By coming together with Netflix, we will combine the stories Warner Bros. has told that have captured the world’s attention for more than a century and ensure audiences continue to enjoy them for generations to come.”
Netflix CEO, Ted Sarandos, states, “The WBD Board continues to support and unanimously recommend our transaction, and we are confident that it will deliver the best outcome for stockholders, consumers, creators and the broader entertainment community.” He continued, “Our revised all-cash agreement will enable an expedited timeline to a stockholder vote and provide greater financial certainty at $27.75 per share in cash, plus the value from the planned separation of Discovery Global. Together, Netflix and Warner Bros. will deliver broader choice and greater value to audiences worldwide, enhancing access to world-class television and film both at home and in theaters. The acquisition will also significantly expand U.S. production capacity and investment in original programming, driving job creation and long-term industry growth.”
This new offer counters Paramount’s unrelenting hostile bid, which includes the purchase of the Discovery branch of Warner Bros. Discovery, which is not included in the Netflix purchase.
