Netflix (NFLX) updated its offer for Warner Bros. Discovery (WBD) on Tuesday. In an SEC filing, the streaming giant said it would make an all-cash offer for Warner Bros. Discovery (WBD) at $27.75 per share.
Warner Bros. (WBD) said it will hold a special meeting of shareholders to vote on the deal before April. The company highlighted that the all-cash transaction provides enhanced certainty around the value WBD stockholders will receive at closing, eliminating market-based variability.
“Today’s revised merger agreement brings us even closer to combining two of the greatest storytelling companies in the world, and with it even more people will enjoy the entertainment they love to watch the most,” stated Warner Bros. Discovery (WBD) CEO David Zaslav. “By coming together with Netflix, we will combine the stories Warner Bros. has told that have captured the world’s attention for more than a century and ensure audiences continue to enjoy them for generations to come,” he added.
Netflix (NFLX) co-CEO Ted Sarandos highlighted that the revised all-cash agreement will enable an expedited timeline to a stockholder vote and provide greater financial certainty at $27.75 per share in cash, plus the value from the planned separation of Discovery Global. “The acquisition will also significantly expand U.S. production capacity and investment in original programming, driving job creation and long-term industry growth,” he maintained.
Netflix’s (NFLX) first formal offer for Warner Bros. Discovery’s (WBD) studios and streaming assets emerged in the initial bidding round on November 20, when it submitted a non-binding proposal valuing the assets at about $27.00 per share.
Shares of Warner Bros. Discovery (WBD) slipped 0.5% to $28.44 in premarket action. Netflix (NFLX) edged 0.7% higher in the early session. Paramount Skydance (PSKY) was down 0.7%.