Full transcript
0:00Netflix announced Tuesday that it has
0:03revised its bid to acquire Warner
0:05Brothers Discovery Studios and streaming
0:07business into an $83 billion allcash
0:10offer. This revision is an apparent
0:13effort to counter Paramount Sky Dance's
0:15hostile takeover bid. The streaming
0:18giant said this would offer quote
0:20enhanced certainty end quote to Warner
0:22shareholders who no longer have to be
0:24concerned about Netflix's fluctuating
0:27stock price. The company said its
0:29revised offer will allow the deal to
0:31move faster and it expects WBD
0:34shareholders to vote on it by April
0:362026.
0:38Netflix's original bid, which was
0:40approved by Warner's board, offered each
0:43WBD shareholder $2325
0:47in cash and $4.50
0:49worth of shares of Netflix common stock
0:52for each WBD stock they owned. Under the
0:56revised terms, WBD shareholders will
0:59receive $27.75
1:02per share they own in cash if the deal
1:04is approved. If Netflix shareholders
1:07approve the deal, WBD will split into
1:09two. Netflix will acquire the Warner
1:12Brothers arm, including its TV and film
1:15studios, Warner Brothers Television,
1:17Warner Brothers Motion Picture Group, DC
1:20Studios, and streaming platform HBO Max.
1:24Discovery Global will become a separate
1:26publicly traded company, retaining the
1:28television networks like CNN, TNT,
1:31Discovery, and others. In December,
1:34shortly after Netflix's initial deal,
1:36Paramount Skyance launched a hostile $18
1:39billion allcash bid for all of Warner
1:42Brothers Discovery assets, valuing the
1:45company at $30 per share. WBD's board
1:49rejected Paramount's initial offer as
1:51quote inferior, citing a lack of
1:54commitment for the $40.65 billion equity
1:57portion. Paramount then revised its bid,
2:00including a $40 billion quote
2:03irrevocable financial backing from CEO
2:05David Ellison's father, Larry Ellison.
2:08However, WBD's leadership again urged
2:12shareholders to reject the revised
2:14offer. Last week, Paramount announced it
2:16is proceeding with its hostile bid and
2:18launching a proxy flight for WBD's
2:21board, nominating directors open to
2:23Paramount's offer. The Ellisonled
2:26company also plans to challenge the
2:28Netflix deal if Warner's board seeks a
2:30shareholder vote on it before the
2:32meeting. For more on this story, check
2:34out the article at the link in the
2:35description.