Netflix is making a bold move to acquire Warner Bros. Discovery's studio and streaming business in an all-cash deal worth $72 billion, aiming to secure the merger and potentially thwart Paramount's hostile bid.
The revised deal, announced on Tuesday, will see Netflix offering $27.75 per share for Warner Bros., which is the same price as their previous cash and stock offer made in December. However, this time around, the transaction will be simplified, providing more certainty of value for Warner shareholders and speeding up the path to a shareholder vote.
The deal has been backed by both companies' boards, with Warner CEO David Zaslav stating that it brings them "even closer to combining two of the greatest storytelling companies in the world." In contrast, Paramount has opted for an all-cash offer worth $77.9 billion, which includes networks like CNN and Discovery.
Warner shareholders have until Wednesday at 5 p.m. ET to tender their shares in support of Paramount's bid, although the deadline may be extended further. The media giant is also facing a proxy fight, with Paramount promising to nominate its own slate of directors before Warner's next shareholder meeting.
Paramount has filed a lawsuit in Delaware Chancery Court seeking to compel Warner Bros. to disclose how it values its bid and the competing offer from Netflix. However, a judge recently denied Paramount's request to expedite the proceeding, calling it an "unserious attempt to distract."
The potential merger is expected to attract significant antitrust scrutiny, with trade groups warning that further consolidation in the industry could result in job losses and less diversity in content.
Industry leaders such as Netflix co-CEO Ted Sarandos are confident that combining with Warner will deliver broader choice and greater value to audiences worldwide, driving job creation and long-term industry growth.
The revised deal, announced on Tuesday, will see Netflix offering $27.75 per share for Warner Bros., which is the same price as their previous cash and stock offer made in December. However, this time around, the transaction will be simplified, providing more certainty of value for Warner shareholders and speeding up the path to a shareholder vote.
The deal has been backed by both companies' boards, with Warner CEO David Zaslav stating that it brings them "even closer to combining two of the greatest storytelling companies in the world." In contrast, Paramount has opted for an all-cash offer worth $77.9 billion, which includes networks like CNN and Discovery.
Warner shareholders have until Wednesday at 5 p.m. ET to tender their shares in support of Paramount's bid, although the deadline may be extended further. The media giant is also facing a proxy fight, with Paramount promising to nominate its own slate of directors before Warner's next shareholder meeting.
Paramount has filed a lawsuit in Delaware Chancery Court seeking to compel Warner Bros. to disclose how it values its bid and the competing offer from Netflix. However, a judge recently denied Paramount's request to expedite the proceeding, calling it an "unserious attempt to distract."
The potential merger is expected to attract significant antitrust scrutiny, with trade groups warning that further consolidation in the industry could result in job losses and less diversity in content.
Industry leaders such as Netflix co-CEO Ted Sarandos are confident that combining with Warner will deliver broader choice and greater value to audiences worldwide, driving job creation and long-term industry growth.
. Think about it, $72 billion is a crazy amount of cash, I mean who needs all that money? It's just going to be a huge burden for Netflix to take on top of everything else they got. And what's the point of Warner Bros.'s content if they're not even giving the shareholders a say in how their own company is being run? 
The whole thing reeks of corporate greed and I don't think it's going to end well for anyone involved.
... I mean, what's next? Everyone just merging into one big company and becoming Netflix or Paramount... 
It's like the whole world is going to be controlled by a few big players. And what about all the creators and writers who are going to lose their jobs because some faceless giant decides that they're not making enough content for the masses? 
I just don't get it, can't we just have more studios and streaming services competing with each other instead of getting swallowed up by a few big corporations? 
i mean it's a crazy amount but think about it they're basically getting access to all of warner bros studios and streaming biz so that's like a whole lot of exclusive content. plus ted sarandos says it'll bring more choice for audiences which is def a win in my books 
! I mean, can you imagine the content they could produce with Warner Bros.' legendary IPs like Harry Potter and DC Comics? Mind. Blown. 
On the other hand, Paramount's offer is a close second, but I'm worried about how this deal will affect the streaming landscape in the long run 
. So, regardless of whether Netflix or Paramount comes out on top, I'm not sure anyone's really winning here 
. The last thing we need is another reason to get frustrated with the lack of content that actually resonates with people 
i mean, we got netflix wantin' to buy warner bros and paramount throwin' its hat into the ring too... it's like a game of musical chairs, but instead of chairs, we're talkin' 'bout tv networks and streaming services 
. anywayz, can't wait to see what this all shakes out to... 
. But at the same time, if it means more diverse stories and creators getting a platform 
, I can get on board with that 
. Maybe it's a trade-off? Netflix has been killing it in original content, and Warner has some iconic IPs... if they can make it work, I think audiences will benefit 
. The real question is what's going to happen to all these jobs when these two companies merge? Not a good sign for the industry 
. Plus, think of all the new jobs created and the growth it'll bring to the industry 
. It's also interesting to see how this will impact the media landscape, with trade groups warning about job losses and less diversity in content 
this deal is gonna be HUGE 
and can u believe paramount's bid is way higher than nflix's but i guess it's all about negotiating with the shares 
this merger is gonna bring so much more value to consumers worldwide 
Yeah, because what we really need is more consolidation in the industry. 
. and what's with all these proxy fights? isn't it time for some real leadership around here? 
they're trying to sabotage the deal with their all-cash offer worth $77.9 billion... but i guess it's not that simple anymore 
it's def gonna be a game changer for the industry 
... ted sarandos just seems so optimistic though... like, are people even going to want more of netflix and warner combined? 
. But, gotta keep an eye on that antitrust scrutiny... don't wanna see any jobs lost or diversity suffer 
. I'm curious how this all plays out - will we end up with a Paramount-Warner deal? Only time (and some serious regulatory attention) will tell! 
. And what about the little guys? Will we see more studios getting squeezed out? 
. One thing's for sure though - it's gonna be interesting to watch this all play out 
. And honestly, $72 billion is a lot of cash