Netflix has revised its proposed deal for Warner Bros. Discovery, announcing it is now prepared to pay entirely in cash for the company’s movie studio and streaming businesses, including Warner Bros. and HBO. The updated plan was confirmed on Tuesday, around six weeks after the original agreement between the two companies.
Under the revised terms, Netflix is offering 27.75 dollars per share for Warner Bros. Discovery’s film and streaming assets. These assets are expected to be separated into a new publicly traded company named Warner Bros. later this year. Television networks such as CNN will move into a separate entity called Discovery Global. Netflix said the transaction will be funded through cash reserves, existing credit facilities, and committed financing.
The all-cash structure is aimed at countering a competing takeover attempt by Paramount, which has offered to buy Warner Bros. Discovery shares at 30 dollars each and has signaled the possibility of a proxy fight. Netflix’s earlier proposal included stock, which allowed Paramount to argue its bid was stronger.
Warner Bros. Discovery’s leadership said the revised deal offers greater certainty for shareholders and speeds up the path to a shareholder vote, expected in the spring after regulatory review. Paramount continues to challenge the valuation through legal and shareholder actions.
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