Netflix has revised its offer for Warner Bros. Discovery to an all-cash deal, dropping its earlier approach which would have seen WBD investors receive a mix of cash and Netflix shares.
The value each investor will receive remains at $27.75 per WBD share.
Last month the streaming giant struck a deal with the WBD board for a $82.7 billion takeover of Warner Bros. Discovery’s studio and streaming business, which includes HBO Max and the Warner Bros. movie studio, while leaving WBD shareholders with ownership of the firm’s leaner channels business.
Despite having the backing of the WBD board, Netflix is facing persistent competition from Paramount Pictures which had made several unsuccessful offers to buy the entire Warner Bros. Discovery business for $30 per share paid entirely in cash.
Having been spurned by the board, Paramount launched a hostile takeover bid in which it offered investors the chance to sell their shares to it.
Paramount has repeatedly stressed the more simplified nature of its cash only deal as it seeks to persuade investors to back its offer.
David Zaslav, President and CEO of Warner Bros. Discovery, said: “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 enjoying the entertainment they love to watch the most.
“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.”
Ted Sarandos, co-CEO of Netflix, added: “The WBD Board continues to support and unanimously recommend our transaction, and we are confident that it will deliver the best outcome for stockholders, consumers, creators and the broader entertainment community.
“Our 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.”