Informed sources revealed that Netflix is considering amending the acquisition terms for Warner Bros. Discovery and has discussed an all-cash purchase of the latter's studio and streaming businesses. The adjustment of the acquisition terms aims to expedite a transaction that could otherwise take months to finalize. This acquisition currently faces opposition from politicians and obstruction from competitor Paramount Skydance. Institutional investors also hold divergent opinions on the matter. Under the original agreement, shareholders of Warner Bros. Discovery would receive $23.25 in cash and $4.5 worth of Netflix common stock per share, with specific adjustment clauses in place should Netflix's stock price fall below $97.91. Since Netflix initiated its acquisition efforts for Warner Bros. Discovery last October, Netflix's stock price has declined by approximately one-quarter. During Tuesday's New York trading session, Netflix's stock price once fell to $89.07. After Warner Bros. Discovery selected Netflix in December, Paramount Skydance has repeatedly attempted to sabotage the deal. Paramount Skydance CEO David Ellison and his father, Oracle co-founder Larry Ellison, have launched a tender offer for Warner Bros. Discovery stock, providing personal guarantees for $40.4 billion in financing, and have sued Warner Bros. Discovery to compel the disclosure of more details regarding the Netflix transaction's valuation. They also plan to nominate board candidates to obstruct the deal. Following the news that Netflix is considering adjusting the acquisition proposal, Warner Bros. Discovery's stock price rose by as much as 3.9%, while Netflix's stock price increased by up to 2%.
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