By MICHELLE CHAPMAN, Associated Press Business Writer
Netflix is revising its $72 billion offer for Warner Bros. Discovery to make it an all-cash transaction.
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Netflix initially put forth a cash and stock deal valued at $27.75 per Warner Bros. share, giving it a total enterprise value of $82.7 billion, including debt.
Netflix and Warner Bros. said Tuesday that the revised deal simplifies the transaction structure, provides more certainty of value for Warner Bros. stockholders and speeds up the path to a Warner Bros. shareholder vote.
The companies said that the all-cash transaction is still valued at $27.75 per Warner Bros. share. Warner Bros. stockholders will also receive the additional value of shares of Discovery Global following its separation from Warner Bros.
Both companies’ boards approved the amended all-cash deal.
Netflix has been in a tussle with Paramount Skydance for Warner Bros., with Paramount taking another step in its hostile takeover bid of Warner Bros. last week, saying that it would name its own slate of directors before the next shareholder meeting of the Hollywood studio.
Netflix’s stock rose 1.3% before the market open, while shares of Warner Bros. Discovery fell slightly.
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