LOS ANGELES - Netflix Tuesday officially made its $83 billion bid for Warner Bros. Discovery's studios and HBO Max streaming business an all-cash offer, a move that could reshape a high-stakes takeover battle with Paramount.
Netflix's move would simplify the transaction and could appeal to shareholders who have been weighing the competing offers.
What they're saying:
"Today's revised merger agreement brings us even closer to combining two of the greatest storytelling companies in the world," Warner Bros. Discovery President and CEO David Zaslav said in a statement.
Paramount has made a hostile all-cash bid valued at $77.9 billion for Warner Bros. and has accused the company of failing to meaningfully engage with its proposal.
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Last week, Paramount escalated the fight by announcing plans to launch a proxy contest for seats on Warner's board and by filing a lawsuit seeking more information about Warner's deal with Netflix.
"Along with the WBD shareholders, we have asked for the customary financial disclosure a board is supposed to provide shareholders when making an investment recommendation," Paramount CEO David Ellison wrote in a letter sent to Warner shareholders.
Dig deeper:
Ellison said those details are necessary for shareholders to make an informed decision and that Delaware law requires they be disclosed, adding that Paramount filed a lawsuit in Delaware Chancery Court seeking a court order compelling Warner to provide the information.
The WBD board has voted unanimously to reject Paramount's latest purchase offer, which would include a takeover of the entire company.
Netflix's offer is to purchase WBD but not all of its cable channels. Warner is planning to spin off its cable channels into a separate company.
The Source: Information for this story came from City News Service which cited statements from Warner Bros. Discovery President and CEO David Zaslav and Paramount CEO David Ellison.