Netflix has beefed up its £62billion offer for Warner Bros Discovery as it fights to fend off rival bidder Paramount Skydance.
In yet another twist in the blockbuster takeover tussle gripping Hollywood, the streaming giant agreed to pay $27.75 per share wholly in cash for the studio behind films from Casablanca and the Wizard of Oz to Superman and Harry Potter.
The company had previously struck a deal that would see it pay $23.25 a share in cash and the remaining $4.50 in Netflix shares.
Netflix said the amended offer – backed by the Warner Bros board – would simplify the deal and provide more certainty to shareholders.
It came after a 15 per cent fall in Netflix shares since the initial deal was announced last month.
Warner Bros Discovery owns HBO, which is behind hit shows including Game of Thrones
David Zaslav, president and chief executive of Warner Bros, said: ‘Today’s revised merger agreement brings us even closer to combining two of the greatest storytelling companies in the world and with it even more people enjoying the entertainment they love to watch the most.
‘By coming together with Netflix, we will combine the stories Warner Bros has told that have captured the world’s attention for more than a century and ensure audiences continue to enjoy them for generations to come.’
Netflix, the home of hit TV shows such as Bridgerton and Squid Game, is planning to buy the Warner Bros film studios as well as its HBO streaming arm behind Sex And The City, Game Of Thrones and The Sopranos.
But Paramount, whose films range from The Godfather to Top Gun, is attempting to hijack the deal with an £81billion offer for the whole of Warner Bros including its cable TV channels such as CNN and TNT Sports and the Discovery+ streaming service.
Paramount’s offer – which has been rejected by Warner Bros – is backed by a £30billion guarantee from Oracle co-founder Larry Ellison, whose son David runs Paramount.
Greg Peters, co-chief executive of Netflix, said: ‘By amending our agreement today, we are underscoring what we have believed all along: not only does our transaction provide superior stockholder value, it is also fundamentally pro-consumer, pro-innovation, pro-creator and pro-growth.
‘Our revised all-cash agreement demonstrates our commitment to the transaction with Warner Bros and provides stockholders with an accelerated process and the financial certainty of cash consideration, while maintaining our commitment to a healthy balance sheet and our solid investment grade ratings.’
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