Netflix Reportedly Considers Revising Its Warner Bros Acquisition Terms

• Netflix is looking to expedite the closing of the deal with the changes in light of a competing bid for Warner Bros from Paramount Skydance Corp, Bloomberg’s report noted.
• Earlier this week, Paramount also filed a suit in the Delaware Chancery Court, asking it to direct Warner Bros. Discovery to provide information with respect to Netflix Inc.’s offer.
• Warner Bros’ board has been partial to Netflix’s offer over Paramount’s $30 per share all-cash bid.

Streaming giant Netflix (NFLX) is reportedly working on revising the terms for its Warner Bros Discovery (WBD) acquisition.

Bloomberg reported on Tuesday, citing people familiar with the discussions, that Netflix has discussed making its offer all cash for Warner Bros’ studios and streaming businesses.

The company is looking to expedite the closing of the deal with the changes in light of a competing bid for Warner Bros from Paramount Skydance Corp, the report noted.

Shares of WBD closed nearly 2% higher on Tuesday while NFLX shares rose 1%. 

The Bidding War

Netflix entered into an agreement with Warner Bros Discovery in December to buy the latter’s studios and streaming businesses for an enterprise value of $82.7 billion or $27.75 per Warner Bros share. This includes $23.25 in cash and $4.50 in Netflix common stock.

However, days later, Paramount Skydance made a $108.4 billion hostile bid for all of Warner Bros, including its cable television assets, creating uncertainty around Netflix’s deal.

While Paramount has called its $30 per share all-cash bid superior to that of Netflix’s, the Warner Bros’ board has been partial to the Netflix offer.

Earlier this week, Paramount also filed a suit in the Delaware Chancery Court, asking it to direct Warner Bros. Discovery to provide information with respect to Netflix Inc.’s offer.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around WBD shares stayed within the ‘bearish’ territory at the time of writing, while sentiment around NFLX stock jumped from ‘bullish’ to ‘extremely bullish’ territory. Retail sentiment around PSKY shares stayed ‘neutral’ in the meantime.

WBD shares have nearly tripled over the past 12 months while NFLX shares have added 7%.

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