Netflix (NFLX) has submitted an amended all-cash offer to acquire Warner Bros Discovery's (WBD) movie studio and streaming business.
The new offer, while all cash, does not change the $82.7 billion U.S. purchase price being offered by Netflix.
The board of directors at Warner Bros. Discovery, which has supported Netflix’s acquisition from the start, was quick to unanimously endorse the revised all-cash bid.
Under terms of the revised offer, Netflix will pay ?Warner Bros. Discovery shareholders $27.75 U.S. per share in cash.
If successful, the deal will give Netflix the Warner Bros. film and television studio, as well as an extensive library of content and the HBO Max streaming service.
Previously, Netflix had offered $23.25 U.S. in cash and $4.50 U.S. in NFLX stock to buy the coveted assets of Warner Bros. Discovery.
Despite the unanimous support of the Warner Bros. board, Netflix has run into a competing hostile takeover bid from rival entertainment giant Paramount Skydance (PSKY).
Consequently, NFLX stock has fallen 15% since ?announcing its bid for Warner Bros. on Dec. 5. The stock currently sits at $88 U.S. per share.
Paramount Skydance’s latest hostile offer for Warner Bros. Discovery is an all-cash bid of $30 U.S. per share.
However, Paramount Skydance’s acquisition would include Warner Bros.’ television ?assets such as specialty channels CNN and TNT, as well as the Discovery+ streaming service.
Under the Netflix deal, Warner Bros. Discovery would retain its television ?and streaming assets and spin them off into a new publicly traded company.
The board at Warner Bros. says the Netflix deal is superior because WBD shareholders will retain a stake in the separately traded Discovery Global television and streaming company.
The takeover battle has driven Warner Bros. Discovery’s stock 193% higher over the last 12 months. The shares currently trade at $28.57 U.S. each.
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