Netflix, Warner Bros Discovery Amend Agreement To All-Cash Offer: Here’s What WBD Shareholders Will Get

• The new agreement offers WBD shareholders $27.75 per share in cash.
• Netflix co-CEO Ted Sarandos stated that the revised agreement with Warner Bros. Discovery will expedite the shareholder vote on the acquisition.
• Netflix’s offer assigns an enterprise value of $82.7 billion to WBD but excludes the spinoff company.

Netflix Inc. (NFLX) and Warner Bros. Discovery Inc. (WBD) on Tuesday announced that they have amended their agreement to acquire WBD into an all-cash deal.

In a joint announcement, the two companies said that the transaction is valued at $27.75 per share, unchanged from the previous offer. However, the previous agreement offered WBD shareholders $23.25 in cash, along with $4.5 in Netflix common stock for each share of WBD common stock.

The new agreement offers WBD shareholders $27.75 per share in cash.

Netflix shares were up 1% at the time of writing, while Warner Bros. Discovery shares were down 0.26%. Retail sentiment on Stocktwits around Netflix trended in the ‘extremely bullish’ territory, while users felt ‘extremely bearish’ about WBD.

Shares of Paramount Skydance Corp. (PSKY) were down 1% in Tuesday’s pre-market trade. Retail sentiment around the company trended in the ‘bearish’ territory.

Revised Agreement To Expedite Vote

Netflix co-CEO Ted Sarandos stated that the revised agreement with Warner Bros. Discovery will expedite the shareholder vote on the acquisition.

“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,” he said.

Netflix’s offer assigns an enterprise value of $82.7 billion to WBD but excludes the spinoff company. However, Paramount’s offer values Warner Bros. Discovery at $108.4 billion, including its debt, as well as cable TV networks such as CNN, Discovery Channel, and TNT.

The closing of the Netflix-WBD deal remains subject to the separation of Discovery Global and regulatory approvals, the streaming giant added.

Paramount Questions WBD Board

Earlier this month, Paramount questioned the Warner Bros. Discovery board for choosing Netflix’s offer, noting that its deal is easier to value than the Netflix transaction.

The David Ellison-led company filed a suit in the Delaware Chancery Court, asking it to direct Warner Bros. Discovery to provide information with respect to Netflix’s offer.

While announcing its hostile bid in December, Paramount highlighted that it offers WBD shareholders $18 billion more in cash than the consideration offered by Netflix.

NFLX stock is down 6% year-to-date, WBD stock is down 1%, and PSKY stock is down 12%.

Also See: ATON Stock Is Soaring Pre-Market – It All Ties Back To Telegram And AI Privacy

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