Netflix could amend Warner Bros bid to make it all cash
Netflix is working on revised terms for Warner Bros. Discovery and is discussing making its all-cash offer for the company’s studios and streaming businesses, Bloomberg News reported, citing people familiar with the talks.
The changes are designed to speed up a sale that would take months to complete and has faced opposition from both politicians and rival bidder Paramount Skydance, according to the report.
Netflix declined to comment on Tuesday, while Warner Bros. did not immediately respond to Reuters’ request for comment.
Netflix’s US$82.7 billion ($123.8 billion) deal initially consisted of cash and shares for Warner Bros’ film and streaming assets, while Paramount offered US$108.4 billion ($162.3 billion) in cash for the entire company, including its cable TV business.
Still, Warner Bros. backed Netflix’s deal despite changes to Paramount’s offer, including $US40 billion ($60 billion) in equity backing from Oracle co-founder Larry Ellison, father of Paramount CEO David Ellison.
Warner Bros’ board of directors argued that Paramount’s offer was dependent on significant debt financing, increasing the risk of closure, and that the offer “fell short”.
Paramount and Netflix are locked in a heated battle for Warner Bros.’ valuable film and television studios and extensive content library.
Lucrative entertainment franchises include Harry Potter, Game of Thrones, Friends and the DC Comics universe, as well as coveted classic films like Casablanca and Citizen Kane.
The bidding war has become Hollywood’s most closely watched takeover war as studios face an environment increasingly dominated by streaming platforms and theatrical revenues remain volatile.
Lawmakers on both sides of the political wing have expressed concerns that further consolidation in the media industry could potentially lead to higher prices and fewer options for consumers.
On Monday, Paramount sued Warner Bros. to get more information about its deal with Netflix and said it plans to appoint directors to Warner Bros.’ board of directors.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
