Netflix wins Warner Bros board support over Paramount with amended all-cash offer
Switching to a 100 per cent cash offer, Netflix secures unanimous board backing for its US$82.7 billion deal over rival Paramount
Netflix switched to an all-cash offer for Warner Bros Discovery’s studio and streaming businesses with unanimous support from the HBO owner’s board without increasing the US$82.7 billion price, in an effort to close the door on rival Paramount’s efforts.
Both Netflix and studio operator Paramount covet Warner Bros for its leading film and television studios, extensive content library and major franchises such as Game of Thrones, Harry Potter and DC Comics’ superheroes Batman and Superman.
Warner Bros has spurned David Ellison-led Paramount, which has altered its terms and engaged in an aggressive media campaign to try to convince shareholders that its bid is superior.
Under the revised agreement, Netflix would pay Warner Bros shareholders US$27.75 per share in cash for the film and television studios, the extensive library and its HBO Max streaming service, instead of a mix of cash and stock, according to a regulatory filing on Tuesday.
Netflix shares rose 0.7 per cent in premarket action. Paramount shares were down 1 per cent; Warner Bros was little changed.
Netflix shares dropped
Netflix shares have fallen almost 15 per cent since announcing the merger on December 5, closing at US$88 per share on Friday – well below the US$97.91 floor price of the original bid. That drop was part of Paramount’s argument that its bid was superior.