Warner Bros. Discovery approves revised all-cash Netflix offer
Warner Bros. Discovery has approved a revised all-cash offer from Netflix to acquire the company’s studios and the HBO Max streaming service, Qazinform News Agency reports, citing Agenzia Nova.
According to a filing submitted to the U.S. Securities and Exchange Commission on January 20, Netflix offered $27.75 per share in cash, replacing a previous proposal that combined cash and Netflix stock. The total value of the transaction remains $72 billion.
The updated deal structure is expected to allow Warner Bros. Discovery shareholders to vote on the transaction as early as April. The company also said its debt would be reduced by $260 million, with the amount transferred to Discovery Global, which will house cable networks including CNN, TNT and Food Network.
Meanwhile, Paramount has submitted a hostile all-cash bid valued at $77.9 billion and announced plans to seek seats on the Warner Bros. Discovery board. A U.S. court has rejected Paramount’s request for expedited disclosure of additional details related to the Netflix deal.
The revised agreement also eliminates the so-called “collar” mechanism tied to fluctuations in the acquirer’s share price.
Earlier, Qazinform News Agency reported that U.S. President Donald Trump would personally take part in the review of the proposed merger between Netflix and Warner Bros. Discovery.
