Netflix and Warner Reach New Agreement for Cash Payment of R$ 445 Billion
Streaming giant simplifies acquisition bid, offering full cash payment to accelerate shareholder approval
Netflix has revised its proposal to acquire Warner Bros. Discovery (WBD) film and television studios, maintaining the original valuation but switching to an all-cash payment structure, according to a statement released Tuesday (20). The move comes amid an intense bidding war with Paramount Skydance for control of the entertainment conglomerate.
“The revised agreement simplifies the transaction structure, provides greater certainty to WBD shareholders regarding its value, and accelerates the shareholder voting process,” Netflix stated.
The transaction remains valued at $27.75 per WBD share—unchanged from the previous offer—but Netflix now proposes paying the entire amount in cash. The initial bid included a 16% stock component. This modification should allow WBD shareholders to vote on the proposal by April, the streaming platform indicated.
In early December, Netflix launched its bid to acquire Warner Bros. movie studios and all of HBO (including channels and the HBO Max streaming platform) for 443.6 billion at current exchange rates), including debt. Excluding debt, the offer totals 386.2 billion). The operation would occur following a split between this entertainment division and a portfolio of channels including CNN and Discovery.
Rival Bid from Paramount Skydance
Meanwhile, Paramount Skydance has proposed acquiring the entire WBD company, including its television channel portfolio. However, its takeover bid—valuing WBD at 580 billion at current rates)—was initially rejected by Warner Bros. Discovery in December. A second, improved offer was again rejected on January 7.
In response, Paramount Skydance filed a lawsuit in the United States, demanding that Warner Bros. disclose certain information to shareholders regarding the competing takeover offers. The company claims WBD’s board maintains biased communication favoring Netflix’s bid.
The battle for Warner Bros. Discovery represents one of the largest media consolidation attempts in recent years, as streaming platforms seek to expand content libraries and production capabilities in an increasingly competitive landscape.
With information from AFP