Netflix Considers Shifting Deal For Warner Bros. To All Cash – Report – Deadline
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Netflix has discussed revising its cash-and-stock deal for the Warner Bros. studios and streaming assets to all cash, according to a Bloomberg report.
The shift would come as Paramount continues to tout its hostile $30-a-share all-cash offer for Warner Bros. Discovery as superior to the deal the David Zaslav-led company inked with the giant streamer. Netflix is offering $27.75 for the Warner Bros. business alone, or $23.25 in cash and $4.50 in Netflix shares. Paramount has argued repeatedly that cash is king and is asking WBD stockholders to tender their shares by a January 21 deadline. The WBD board has twice advised shareholders not to do so and stood by its Netflix agreement.
Paramount on Monday sued the WBD board in Delaware Chancery Court to release all documentation detailing the decision-making process and math behind its choice of Netflix over Paramount. It also plans a proxy fight, saying it will put up its own slate of directors for election to the WBD board in an attempt to derail the Netflix deal and pursue its own from the inside.
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WBD called the lawsuit “meritless.” It has characterized a Paramount merger as riskier for Warner Bros. and its shareholders, which Paramount denies. Warner’s board and some of its shareholders also seem surprised that Paramount has not raised its offer above the $30 a share.
A rep for Netflix declined to comment. The streamer’s shares, which have been a bit wobbly amid the takeover fireworks, appeared to rise on the report, closing up 1% in a down market.
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