Netflix considering amending bid in Warner Bros acquisition to make all cash offer

The intense bidding war underscores the significant value of Warner Bros’ prized film and television studios

Netflix is reportedly revising its offer for Warner Bros Discovery's studios and streaming businesses, with discussions centring on an all-cash deal, according to sources familiar with the talks.

The move is understood to be an attempt to accelerate a sale process that has encountered resistance from politicians and rival bidder Paramount Skydance, Bloomberg News reported on Tuesday, citing people familiar with the talks.

Initially, Netflix’s offer for Warner Bros’ film and streaming assets stood at at $82.7 billion in cash and stock. This contrasted with Paramount’s $108.4 billion all-cash bid for the entire company, including its cable television operations.

Despite amendments to Paramount’s proposal, which included a $40 billion equity backing from Oracle co-founder Larry Ellison, Warner Bros has consistently favored Netflix’s deal.

The Warner Bros board has argued that Paramount’s offer relies heavily on debt financing, increasing the risk of closure, and that the bid "remains inadequate."

The intense bidding war underscores the significant value of Warner Bros’ prized film and television studios, alongside its extensive content library.

The Warner Bros board has argued that Paramount’s offer relies heavily on debt financing, increasing the risk of closure, and that the bid ‘remains inadequate’ (Alamy/PA)

This includes lucrative entertainment franchises such as "Harry Potter," "Game of Thrones," "Friends," and the DC Comics universe, as well as classic films like "Casablanca" and "Citizen Kane."

The battle has become Hollywood’s most closely watched takeover, reflecting the industry’s pivot towards streaming platforms and the ongoing volatility of theatrical revenues.

Concerns have also been raised by lawmakers across the political spectrum regarding further consolidation within the media industry, fearing it could lead to higher prices and reduced consumer choice.

Adding another layer to the dispute, Paramount recently sued Warner Bros for more information on its deal with Netflix and announced plans to nominate directors to the Warner Bros board.

Netflix declined to comment, while Warner Bros did not immediately respond to a Reuters request for comment.