Netflix may switch to a cash offer for Warner Bros.
Jan. 14 (UPI) — Netflix is considering raising its offer for Warner Bros. Discovery to a cash offer, making the vote to accept it come months earlier, reports said.
The amended offer would allow WBD shareholders to vote sooner because stock deals require more disclosures and documentation. As of now, the vote would be in spring or summer. If the deal becomes all cash, as Bloomberg reported first, it could happen as early as late February, CNBC reported.
The deal is valued at $27.75 per WBD share. The deal’s equity value would be at $72 billion, with a total enterprise value of about $82.7 billion.
In October, Warner Bros. announced it was open to offers after getting several unsolicited ones. On Dec. 5, after a bidding war between Netflix and Paramount Skydance, Warner Bros. said it was accepting Netflix’s offer.
A week later, Paramount launched a hostile bid to buy WBD. The WBD board told shareholders not to accept the Paramount bid because it didn’t have the backing of Oracle creator Larry Ellison, father of Paramount CEO David Ellison. On Dec. 22, Paramount told WBD shareholders that it has Larry Ellison’s backing of $40 billion in equity.
Earlier this week, Paramount sued Warner Bros. Discovery, demanding information about its sale process and pending deal with Netflix, CNBC reported.