Netflix has revised its acquisition offer for Warner Bros. Discovery’s (WBD) studio and streaming assets to an all-cash deal valued at $27.75 per share, maintaining the total enterprise value around $82.7 billion. This change from a prior cash-and-stock proposal aims to provide greater certainty for shareholders and counter rival bids, including from Paramount. WBD’s board unanimously supports the updated Netflix offer.
Key Deal Details
The all-cash structure applies to WBD’s film studio, HBO Max, and streaming operations, set to spin off into a new Warner Bros. entity. Netflix plans to fund it via cash on hand, facilities, and committed financing without raising the price. Post-deal, WBD’s remaining assets like CNN will form Discovery Global.
Discovery Global Valuation
WBD assesses standalone Discovery Global shares between $1.33 and $6.86, based on public company comparisons and sum-of-the-parts analysis. This range factors into evaluating bids, as Netflix’s deal leaves shareholders with Discovery Global stakes.
Competitive Landscape
Paramount’s $30-per-share all-cash bid for the entire WBD faces rejection, with WBD citing risks and favoring Netflix’s certainty. The shift to all-cash positions Netflix strongly amid the takeover battle.
