Netflix working on switching to all-cash offer for Warner Bros - report

Netflix is reportedly working on revised terms for its Warner Bros. Discovery acquisition and has discussed making an all-cash offer for the company’s studios and streaming businesses.

According to Bloomberg, which cited people familiar with the discussions, the changes are designed to expedite a sale that will take months to close and has faced opposition both from politicians and rival bidder Paramount Skydance.

Institutional investors have been divided in their support.

Under the original agreement, Warner Bros. shareholders were set to receive $23.25 in cash and $4.50 in Netflix common stock, with certain adjustments in place if Netflix shares fall below $97.91.

Since the company’s pursuit of Warner Bros. began in October, Netflix shares have lost about a quarter of their value.

Netflix lined up $59bn of financing from Wall Street banks to help support its acquisition, in the form of one of the largest ever bridge loans. The company has already refinanced about $25bn of that with some longer-term debt.