Netflix Considers Revising Warner Bros. Offer to Propose an All-Cash Deal

Netflix Pursues Revised Deal for Warner Bros. Discovery

According to sources close to the matter, Netflix Inc. is negotiating updated terms for its planned acquisition of Warner Bros. Discovery Inc., and has considered presenting an all-cash bid for the company’s studios and streaming divisions.

The proposed changes aim to speed up a transaction that is expected to take several months to finalize. The deal has encountered resistance from lawmakers and competing bidder Paramount Skydance Corp., while institutional investors remain split on their support.

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The initial agreement stipulated that Warner Bros. shareholders would receive $23.25 in cash and $4.50 in Netflix stock, with provisions for adjustments if Netflix’s share price dropped below $97.91. Since Netflix began pursuing Warner Bros. in October, its stock has fallen by about 25%, reaching a low of $89.07 in New York trading on Tuesday.

After selecting Netflix as its preferred buyer in early December, Warner Bros. has faced ongoing attempts by Paramount to derail the agreement and promote its own offer.

Paramount CEO David Ellison, along with his father Larry Ellison, co-founder of Oracle Corp., have initiated a tender offer for Warner shares, personally guaranteed $40.4 billion in funding, and filed a lawsuit seeking more information about Warner Bros.’ valuation of the Netflix deal.

Additionally, they intend to nominate new board members to block the transaction.

Following reports of Netflix’s renewed negotiations, Warner Bros. shares climbed as much as 3.9%, while Netflix shares increased by up to 2%.

Photographer: Kyle Grillot/Bloomberg

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