Netflix is considering modifying the terms of the acquisition of Warner Bros to discuss a full cash acquisition proposal.
According to informed sources, Netflix is considering modifying the terms of its acquisition of Warner Bros. and has discussed acquiring the latter's studio and streaming business in all-cash. The adjustments to the acquisition terms aim to expedite the transaction, which could take several months to complete. The acquisition is currently facing opposition from political figures and interference from competitors such as Paramount. There are also diverging opinions among institutional investors. Under the original agreement, Warner Bros. shareholders were to receive $23.25 in cash and $4.5 in Netflix common stock per share, with specific adjustment clauses if Netflix's stock price falls below $97.91. Since Netflix launched its acquisition of Warner Bros. last October, Netflix's stock price has fallen by about one-fourth. On Tuesday, Netflix's stock price fell to $89.07 in midday trading in New York.
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