Netflix is reportedly preparing to revise its acquisition offer for Warner Bros. Discovery’s (WBD) studio and streaming businesses. The new proposal will shift to an all-cash deal, according to reports from the Wall Street Journal and Bloomberg.
This potential change follows pressure from a rival bid by Paramount Skydance. It also addresses the decline in Netflix’s stock price, which reduced the value of the original cash-and-stock proposal.
The original agreement carried an enterprise valuation of $82.7 billion. That proposal included $23.25 in cash and $4.50 in Netflix stock for each WBD share. Since the deal was first announced in December, Netflix’s stock has fallen over 12%, impacting the total value offered to WBD shareholders.
The move to an all-cash offer is viewed as a strategy to expedite the closing of the major media merger. Neither Netflix nor Warner Bros. Discovery has officially commented on the reports.