Netflix offers all cash for Warner to keep Paramount at bay

Netflix has switched to an all-cash offer for Warner Bros Discovery's studio and streaming assets without increasing the $82.7 billion price in a bid to shut the door on Paramount's rival efforts to snag the Hollywood giant.

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People are driven in a cart on the Paramount studio lot in Hollywood, Los Angeles. The new $27.75-per-share offer from Netflix replaces its earlier cash-and-stock bid for $23.25 in cash and $4.50 in Netflix stock.

(REUTERS FILE)

The new all-cash bid - at $27.75 a share - has unanimous support from the Warner Bros board, according to a Tuesday regulatory filing.

Both Netflix and Paramount Skydance covet Warner Bros for its leading film and television studios, extensive content library and major franchises such as “Game of Thrones,” “Harry Potter” and DC Comics’ superheroes Batman and Superman. Paramount has altered its terms and engaged in an aggressive media campaign to try to convince shareholders that its bid is superior, but Warner Bros has spurned the David Ellison-led company. It declined to comment Tuesday on Netflix’s all-cash offer.

Warner Bros will hold a special investor meeting to vote on the Netflix deal, with the streaming pioneer saying that the meeting was expected to be held by April.

"Our revised all-cash agreement will enable an expedited timeline to a stockholder vote and provide greater financial certainty," Netflix co-CEO Ted Sarandos said in a statement.

Shares of Netflix, which is slated to report quarterly earnings after the market close, were up 0.9 per cent before the bell. Paramount shares were down 1.9 per cent, while Warner Bros’ shares down 0.5 per cent in early trading.