Netflix has dropped its proposed deal to acquire Warner Bros. Discovery with a mix of cash and stock, replacing it with an all-cash offer in a bid to fend off a hostile takeover bid from Paramount.
The streaming giant agreed to pay $27.75 per share for the entire company, which had originally planned to be acquired through a combination of cash and Netflix stock worth $23.25 and $4.50, respectively. The deal's value remains unchanged at $72 billion, but the all-cash structure aims to provide greater certainty for shareholders.
Warner Bros. Discovery has set an April 2026 deadline for shareholder approval, which would pave the way for a change in leadership at the struggling media conglomerate. The company's board chairman, Samuel Di Piazza Jr., described the new deal as "simplifying the transaction structure" and allowing for greater certainty around the value of Warner Bros. stockholders will receive.
Meanwhile, Paramount Skydance has been trying to upend the deal with its own hostile takeover bid worth $108.4 billion per share. However, its plan faces significant challenges, including a reliance on debt financing and concerns about the company's financial stability.
Paramount also filed a lawsuit against Warner Bros. Discovery last week, alleging that the company failed to disclose essential information about the proposed spinoff of its cable TV division. The suit claims that this omission would have provided valuable insight for shareholders deciding between the Paramount and Netflix bids.
Despite this setback, Paramount believes its offer is superior to Netflix's revised deal. In a letter to Warner Bros. shareholders, CEO David Ellison stated that the company has "yet to raise the price or address the numerous and obvious deficiencies of its offer," and instead opted to pursue a lawsuit in Delaware Chancery Court.
In contrast, Warner Bros. Discovery sees its all-cash structure as a way to deliver greater value certainty for shareholders. The revised deal is expected to provide an even more attractive return on investment, according to experts.
Ultimately, the outcome of this high-stakes game of corporate chess will depend on how effectively each company can persuade its stakeholders that its proposal offers the best future prospects.
The streaming giant agreed to pay $27.75 per share for the entire company, which had originally planned to be acquired through a combination of cash and Netflix stock worth $23.25 and $4.50, respectively. The deal's value remains unchanged at $72 billion, but the all-cash structure aims to provide greater certainty for shareholders.
Warner Bros. Discovery has set an April 2026 deadline for shareholder approval, which would pave the way for a change in leadership at the struggling media conglomerate. The company's board chairman, Samuel Di Piazza Jr., described the new deal as "simplifying the transaction structure" and allowing for greater certainty around the value of Warner Bros. stockholders will receive.
Meanwhile, Paramount Skydance has been trying to upend the deal with its own hostile takeover bid worth $108.4 billion per share. However, its plan faces significant challenges, including a reliance on debt financing and concerns about the company's financial stability.
Paramount also filed a lawsuit against Warner Bros. Discovery last week, alleging that the company failed to disclose essential information about the proposed spinoff of its cable TV division. The suit claims that this omission would have provided valuable insight for shareholders deciding between the Paramount and Netflix bids.
Despite this setback, Paramount believes its offer is superior to Netflix's revised deal. In a letter to Warner Bros. shareholders, CEO David Ellison stated that the company has "yet to raise the price or address the numerous and obvious deficiencies of its offer," and instead opted to pursue a lawsuit in Delaware Chancery Court.
In contrast, Warner Bros. Discovery sees its all-cash structure as a way to deliver greater value certainty for shareholders. The revised deal is expected to provide an even more attractive return on investment, according to experts.
Ultimately, the outcome of this high-stakes game of corporate chess will depend on how effectively each company can persuade its stakeholders that its proposal offers the best future prospects.
. It's a great move, if you ask me! They're not getting into a messy game of corporate chess where they'd have to give up way too much stock. The all-cash offer is way more straightforward and less risk for shareholders. Plus, it's about time someone puts the squeeze on Paramount Skydance with their ridiculous $108.4 billion bid 
. I mean, who can afford that? The market would totally crash if they started printing money like that 
. And let's be real, Warner Bros. is not exactly swimming in cash...
anyway, it's gonna be interesting to see which offer warner bros discovery ultimately chooses 
and I somehow managed to whip up the fluffiest croissants ever... but then, out of nowhere, a giant wave crashes on stage and ruins everything 
. Anyway, back to this Warner Bros. deal... I mean, who needs all that drama? Have you guys tried those new vegan macarons from that trendy bakery downtown? Game changer 
and it's gonna be super easy to close the deal now too 
can't wait to see what happens next in this drama 
think about it, they're both already struggling 
and now they're fighting over who gets to control the game 
it's like we humans do when we want something - we fight for it, make deals, try to outsmart each other 
but in the end, it's all just a dance, a game of give-and-take 
so what can we learn from this? well, maybe that true strength isn't about being the best player on the field, but about knowing when to fold 'em and move on to the next game 
like, come on! that's just nasty business moves. and can we talk about the numbers tho? $27.75 per share is insane 
meanwhile Paramount has to deal with debt financing and financial instability 
so fingers crossed for Warner Bros. Discovery and their new deal 
meanwhile, warner bros. discovery is like "hey, we've got dis deal locked down" & i gotta respect dat 
its gonna b interesting 2 see wht happens next 
. Less chance of something going south and leaving them high and dry 
. Don't wanna get tangled up in that mess 
. I think Warner Bros. Discovery's got this one in the bag 
.
. You gotta play it cool, anticipate your opponent's moves... and maybe even throw 'em off guard 
i mean, idk how they plan to make that work lol what do u guys think should happen next?
but honestly, i think their revised deal is a solid move, you know? all-cash and no strings attached can't be bad, right? 
have you seen their debt-to-equity ratio? 
. whatever happens next, i'm just gonna sit back and enjoy the drama 
and now param is suing wbd over some info disclosure shenanigans 