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Jan 20 (Reuters) - Netflix has switched to an all-cash bid for Warner Bros Discovery's studio and streaming businesses, securing unanimous board backing without raising its $82.7 billion offer, according to a regulatory filing.
Warner Bros WBD.O chose Netflix as its suitor last year, rebuffing Paramount Skydance's PSKY.O hostile bid.
Here is how both the bids compare:
Netflix | Paramount Skydance | |
Savings | $2 billion to $3 billion in annual savings | Combined business will execute more than $6 billion in cost synergies |
Offer | All-cash $27.75 per share | All-cash tender offer of $30.00 per share |
Premium | 121.3% to Warner Bros Discovery's closing price on Sept. 10 | 139% to the undisturbed Warner Bros' stock price of $12.54 as of September 10 |
Closing | Between 12 months and 18 months | More than 12 months |
CEOs | Co-CEOs Ted Sarandos and Greg Peters | David Ellison |
Backers and financing | Debt funding of up to $59 billion via Wells Fargo, BNP Paribas, HSBC Bank, along with cash on hand and equity | Larry Ellison, RedBird to provide equity capital, debt funding of $54 billion from Bank of America, Citi and Apollo. Other financing partners include Saudi Arabia's Public Investment Fund, Abu Dhabi-based L’imad Holding Company PJSC, Qatar Investment Authority |
Value | Enterprise value of $82.7 billion, equity value of $72.0 billion | Enterprise value of $108.4 billion, equity value of $74.35 billion |
Breakup fee | Netflix to pay $5.8 billion, Warner Bros to pay $2.8 billion | Paramount to pay $5.8 billion |
Streaming subscribers | Over 300 million | 79.1 million |
U.S. President Donald Trump's comments | Trump said regarding the acquisition: "Netflix is a great company. They've done a phenomenal job. Ted is a fantastic man… They have a very big market share and when they have Warner Bros., you know, that share goes up a lot so, I don't know." | Trump in a post on Truth Social criticized CBS and its new owners after Paramount was acquired by Skydance. He said that since the acquisition, the program 60 minutes has "actually gotten worse." In the past, however, Trump has praised Paramount Skydance CEO David Ellison, calling him "great". |
Market cap | Valued at $402.12 billion as of closing price on January 16 | Valued at $12.65 billion as of closing price on January 16 |
Assets on the line | Warner Bros' film and television studios, videogame IP and developers, HBO network and its content library, and the HBO Max streaming service | All of Warner Bros Discovery including film, television, streaming, gaming and cable television networks including HBO and CNN |
Source: Company filings, LSEG data, media reports
(Reporting by Zaheer Kachwala, Anhata Rooprai and Arnav Mishra in Bengaluru; Editing by Arun Koyyur and Sriraj Kalluvila)
((Zaheer.Kachwala@thomsonreuters.com))
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