Entertainment colossus Netflix is considering submitting an all-cash bid to acquire the rights to buy Warner Bros. The Wall Street Journal reported Tuesday.
This change would be designed to accelerate the controversial takeover bid that Netflix presented last December and whose initial deal was worth $82.7 billion in a combination of cash, equity and debt.
Netflix’s offer of $27.75 per share includes $23.25 per WBD share in cash and $4.50 in Netflix stock, plus a stake in the company’s Discovery Global unit pending separation from the company.
The deal sparked a wave of criticism, in addition to the reaction of rival Paramount, which launched a hostile takeover bid on December 8 for $108.4 billion in exchange for its film and television studios and an extensive library of content that includes titles such as ‘Harry Potter’ and ‘Game of Thrones’.
The U.S. media conglomerate stoked the industry titans’ bidding war with a lawsuit it filed yesterday against Warner to force the company to disclose how it is valuing its Discovery Global unit within the Netflix deal, including the amount of debt WBD will offload to Discovery Global.
These details are crucial to assessing the overall shareholder value of the Netflix deal versus Paramount’s offer, Variety further notes, reported Agencia EFE.
Find out more at ‘QueOnnda.com’.
