Netflix Makes Mostly Cash Offer for Warner Bros.

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Transcript

00:00Netflix apparently submitting a mostly cash offer, a sweetened bid here to buy that company.

00:05Chris Palmieri, our man in Los Angeles, joins us right now.

00:08And Chris, I mean, what do we know?

00:09I mean, do we have any sense of what they actually bid?

00:11I know the last couple of weeks of reporting was that most of the bids were around that $23.50 mark.

00:18And apparently Zaslav and Warner Brothers wanted to see something a little bit more.

00:21What do we know?

00:22Yeah, we definitely are hearing that they're edging a little bit closer to that $30 number,

00:27depending on how you value things.

00:28A big surprise here that we reported was that the Netflix offers mostly cash

00:33because Netflix's stock has been doing terrific in recent years.

00:37A lot of people expected to use that as a currency.

00:41And apparently they feel more confident paying cash and, in fact,

00:46are in talks to raise tens of billions of dollars as a bridge loan to help pay for this.

00:51And it's interesting.

00:52When it comes to Netflix, the understanding is that they're only interested in part of the company here,

00:57specifically the studios and HBO Max, the streaming service there.

01:01What would that mean for the cable channels?

01:05Well, then, in the case of Comcast and Netflix, which both of them are only interested in the streaming and the studios,

01:12Warner Brothers would continue with plans to spin off its cable channels.

01:15So that's CNN, TNT, and all of those businesses would still go off to current shareholders.

01:21So, and just real quickly, Chris, when we talk about this idea,

01:24are we anticipating that we'll also see something, a sweetened bid from the other players in this,

01:29the Comcast, the Paramount, et cetera?

01:31Yes, we know that Netflix submitted one today, the second round,

01:35but we are expecting the others.

01:36And we're also hearing that a deal could come in just days, really,

01:40if Warner Brothers board signs off.