The Warner Bros. Discovery (WBD) drama just got even more juicy! Netflix has thrown its hat back into the ring, revising its earlier deal with WBD’s board to sweeten the pot and try to win over shareholders.
According to Netflix’s press release, the revised deal still values WBD at a whopping $82.7 billion, with a purchase price of $27.75 per share. But this all-cash offer is seen as a more straightforward and appealing option for shareholders, who might be hesitant about the complex deal structure Netflix proposed earlier.
This move comes as a direct response to Paramount Skydance’s aggressive all-cash bid of $30 per share, which has already secured a $40 billion guarantee from Oracle co-founder Larry Ellison (the billionaire dad of Paramount CEO David Ellison). It’s a no-holds-barred battle for control of WBD, and things are getting real!
Paramount isn’t backing down, though. It’s sued WBD for more information on Netflix’s offer, claiming that the streaming giant isn’t being transparent enough. The suit also seeks to speed up the process, but the court has so far rejected that request.
Meanwhile, WBD is sticking to its guns, arguing that selling to Netflix would be a better deal due to the streaming giant’s financial muscle. The company is also raising concerns about Paramount’s ability to operate the combined entity, citing potential debt and free cash flow issues.
I’m dying to see how this all plays out! Will Netflix’s all-cash offer be enough to sway WBD shareholders, or will Paramount’s aggressive tactics prove more persuasive? One thing’s for sure – it’s going to be a wild ride!
