Netflix neutralizes Paramount's arguments. Payment for Warner Bros. Discovery 100 percent cash

Netflix has filed an amended all-cash agreement to buy the Warner Bros. studio and streaming service. Discovery Inc., fighting Paramount Skydance Corp. to take over one of the most famous Hollywood entertainment companies, Bloomberg reported on Tuesday.

Netflix which previously agreed to pay $27.75 per share in cash and stock for Warner's assetswill pay the full amount in cash. Warner Bros. plans to convene an extraordinary general meeting of shareholders to approve the agreement. The voting date has not been set yet.

Changes are intended Accelerating sales and dispelling Paramount's claims that its $30-per-share cash offer covering all Warner companies, including cable channels such as CNN and TNT, was superior. Paramount, the parent company of CBS and MTV, is urging investors to bid for its shares.

Paramount doesn't give up

Paramount is actively pursuing a takeover of Warner Bros. since September, and streaming leader Netflix emerged as a surprise competitor, entering the fray after Warner Bros. was put up for sale in October.

The new terms neutralize one of Paramount's main objections, that the share of shares in Netflix's offer makes its offer worse. Warner Bros. turned down multiple offers from Paramount.

Warner Bros. also addressed another criticism by outlining how it values ​​its cable networks, which would be spun off to shareholders under a separate company called Discovery Global.

Division plans and debt repayment

Under the spin-off plans, Discovery Global would have $17 billion in debt as of June 30, 2026, which will reduce to $16.1 billion by the end of the year. Warner and Netflix also amended their deal so that Discovery Global will have $260 million less in debt than originally plannedthanks to higher-than-expected cash flow last year.

The documents project Discovery Global's new network revenue in 2026 to be $16.9 billion and adjusted earnings before interest, taxes, depreciation and amortization to be $5.4 billion.

Concerns about monopoly in pop culture and market reaction

The Warner Bros. merger and Netflix would mean combining two of the world's largest streaming providers, with about 450 million subscribers, and would give Netflix a deep library of shows and movies that would allow it to take on competitors such as Walt Disney and Amazon. Hollywood unions and theater owners have expressed concerns that the deal would hurt their members and companies.

Netflix co-CEOs Ted Sarandos and Greg Peters told investors at the UBS conference on December 8 that they are confident that their contract will be approved. Netflix and Warner Bros. executives met with regulators in Europe last week to convince them of the deal's merits. Netflix is ​​scheduled to report fourth-quarter earnings on Tuesday after markets close.

David Ellison, Paramount's CEO, argued that a merger with his company would maintain a more traditional company structure and preserve some of Warner Bros.' legacy. He argues that his cash offer, backed by a family trust, is financially more advantageous and also that it would be easier for regulators to approve.

Netflix shares increase by 1%. before the session after the announcement of the information. (PAP Business)

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