Netflix Makes $82.7 Billion All-Cash Bid for Warner Bros

Netflix announced on Tuesday it had agreed an all-cash deal for the Warner Bros assets, replacing its previous cash-and-stock deal. The all-cash deal of $27.75 per share comes as the rival bidder, Paramount Skydance, continues to promote its own all-cash offer, worth $108.4 billion, for the entire Warner Bros business. • British cinemas threaten to disrupt Netflix’s $83bn Warner Bros deal “Our revised all-cash agreement will enable an expedited timeline to a stockholder vote and provide greater ­financial certainty,” Ted Sarandos, ­Netflix co-chief executive, said. Netflix, which was founded in 1997 as a DVD postal service, has grown into a streaming giant with a market capitalisation of about $400 billion. Its viewership in December was up 10 per cent from November, as Stranger Things generated more than 15 billion viewing minutes to become December’s most-watched streaming title. The company said it had obtained commitments for a $59 billion bridge loan on December 4 to support the Warner acquisition. On Monday it increased the bridge loan commitment by $8.2 billion to support its all-cash offer. Netflix forecasts continued growth this year, with revenue of $50.7 billion to $51.7 billion. Ad revenue is expected to roughly double. Paolo Pescatore, founder of PP Foresight, a specialist analytics firm, said the Netflix results “reaffirm the company’s strategy and confidence in its ability to grow. And more importantly, it will help monetise its base through advertising and sponsorships. On the amended all cash offer for Warner Bros Discovery Pescatore said it was “a statement of intent with Netflix, clearly keen to expedite matters and wrap up the deal as soon as possible. It is in no one’s interest for this saga to drag on any longer, given the regulatory concerns and the additional time rivals need to react.”