Netflix and Warner seek quick shareholder vote as Paramount tries to upend deal.
Netflix agreed to pay all cash for Warner Bros. Discovery, amending its $72 billion deal in an attempt to fight off Paramount’s hostile takeover bid.
Netflix originally agreed to buy the company with a mix of cash and stock. To sweeten the offer for shareholders, Netflix and Warner Bros. today announced that Netflix will pay all cash instead. If successful, Netflix’s purchase will include HBO Max, WB Studios, and other assets.
The price is unchanged at $27.75 per share, and Warner Bros. is targeting an April 2026 shareholder vote. The original plan was for Netflix to buy each Warner Bros. share with $23.25 in cash and $4.50 in Netflix stock.
The revised agreement “simplifies the transaction structure,” “accelerates the path to a WBD stockholder vote,” and “provides enhanced certainty around the value WBD stockholders will receive at closing, eliminating market-based variability,” today’s press release said. Netflix plans to finance the deal with “a combination of cash on hand, available credit facilities and committed financing.”
...read more at arstechnica.com
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Crazy why do this? Will this be the blunder of Netflix
Looks like they’re gonna make it happen no matter what, I guess they’ve got the deep pockets for it.