Netflix is working on revised terms for Warner Bros Discovery and has discussed making its offer all cash for the company’s studios and streaming businesses, Bloomberg News has reported, citing people familiar with the talks.
The changes are designed to expedite a sale, which will take months to close and has faced opposition both from politicians and rival bidder Paramount Skydance, according to the report.
Netflix declined to comment on Tuesday, while Warner Bros did not immediately respond to a Reuters request for comment.
Netflix’s $US82.7 billion ($A123.8 billion) deal initially consisted of cash and stock for Warner Bros’ film and streaming assets, while Paramount offered $US108.4 billion ($A162.3 billion) in cash for the whole company, including its cable TV business.
Still, Warner Bros has favoured Netflix’s deal despite amendments to Paramount’s bid, including a $US40 billion ($A60 billion) equity backing by Oracle co-founder Larry Ellison – father of Paramount CEO David Ellison.
Warner Bros’ board has argued that Paramount’s offer hinges on a significant amount of debt financing that heightens the risk of closing and the offer “remains inadequate”.
Paramount and Netflix have been in a heated battle for Warner Bros, its prized film and television studios, and its extensive content library.
Its lucrative entertainment franchises include Harry Potter, Game of Thrones, Friends and the DC Comics universe, as well as coveted classic films such as Casablanca and Citizen Kane.
The bidding war has become Hollywood’s most closely watched takeover battle, as studios confront a landscape increasingly dominated by streaming platforms and as theatrical revenue remains volatile.
Lawmakers on both sides of the political aisle have raised concerns about further consolidation in the media industry that could potentially lead to higher prices and less choice for consumers.
Paramount on Monday sued Warner Bros for more information on its deal with Netflix and said it planned to nominate directors to Warner Bros’ board.
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