Netflix is reportedly preparing to switch to an all-cash offer to seal its takeover of the studios and streaming businesses of Warner Bros Discovery (WBD), as it tries to speed up the deal and fend off a rival hostile bid from Paramount Skydance.
The changes to Netflix’s $83bn (£62bn) offer, first reported by Bloomberg, are designed to accelerate the acquisition, which is expected to take months to conclude, and make it more palatable for WBD shareholders.
The tie-up between Netflix and WBD has faced a backlash from US politicians and figures in the entertainment industry, with some voicing concerns that the resulting media giant would control almost half of the streaming market.
Under the Netflix deal, the streaming company’s vast library would take control of WBD’s prize assets including Warner Bros, the studio behind franchises including Harry Potter, Superman and Batman, as well as HBO, home to shows including Game of Thrones, The White Lotus and Succession.
It comes as Paramount, controlled by the billionaire Ellison family, is attempting to secure its own $108.4bn takeover of WBD. Its bid has been backstopped by a personal $40bn guarantee by Larry Ellison, a co-founder of Oracle.
WBD has previously told its shareholders to reject the “inadequate” hostile takeover bid by Paramount and has argued that its offer relies on a significant amount of debt financing.
Amid an extraordinary corporate battle, Paramount is planning to nominate directors to WBD’s board to vote against the Netflix deal.
Under the terms of Netflix’s original deal, WBD shareholders were due $23.25 a share in cash as well as stock in the streaming company and equity in WBD’s global networks operation – which Netflix is not buying – that includes CNN, the Cartoon Network and the Discovery Channel.
Warner Bros formally put itself up for sale in October after receiving interest from several parties. It agreed the deal with Netflix in early December after rival takeover bids from Paramount and Comcast, which owns assets including Universal Studios, the US news network NBC and Sky.
Since making the agreement with Netflix, WBD has faced repeated attempts by Paramount to overturn the deal and accept its offer.
WBD shares closed 1.6% higher on Tuesday after reports of Netflix’s plans, while shares in Netflix rose 1%.
