Summary
Netflix has proposed an all-cash offer to buy Warner Bros Discovery's studio and streaming assets, valued at $82.7 billion, in an effort to outdo Paramount's competing bid. The Warner Bros board supports this offer, with a shareholder vote scheduled by April. Netflix aims to secure Warner Bros for its valuable film and TV franchises, explaining that the cash offer provides financial certainty.
Key Facts
- Netflix's offer for Warner Bros is an all-cash deal at $27.75 per share.
- The Warner Bros board supports Netflix's offer over Paramount's.
- A shareholder meeting is planned by April to vote on Netflix's offer.
- Netflix and Paramount are both interested in Warner Bros's popular content like Game of Thrones and DC Comics franchises.
- Paramount has also made a bid and is actively trying to convince shareholders of its value.
- Netflix's shares decreased by 15% since announcing the merger in December.
- Warner Bros's advisors value the Discovery Global spin-off, holding assets like CNN and TNT Sports, as part of its strategy.
- Paramount had argued its bid was better because Netflix shares dropped below the bid's initial value.
