• by Wayne Friedman , 6 hours ago

Just 24 hours after the news that Paramount was filing a lawsuit against Warner Bros. Discovery, Netflix -- the competing bidder for WBD -- is considering revamping its deal to an all-cash offer, according to reports.

Netflix's original deal, for WBD's studios and streaming group, is a cash-and-stock agreement valued at $82.7 billion.

This would seemingly give a somewhat equal footing with Paramount's all-cash, $30-a-share offer for the entire company.

Netflix's deal, for $27.75 a share, is for only WBD's studios and streaming business.

On Tuesday, WBD closed up 2% to $28.89, while Netflix added 1% to $90.32 and Paramount Skydance was down 0.3% to $12.12.

WBD has been concerned that Paramount’s $108.4 billion deal is backed by substantial financing debt from a number of sources, which may fall through.

Representatives from WBD and Netflix did not respond to inquiries from Television News Daily by press time.

On Monday, Paramount Skydance filed a lawsuit against WBD in an effort to force the company to disclose financial details about its Netflix deal. It argued that WBD's board is misleading shareholders by favoring Netflix's offer over Paramount's all-cash bid.

A key part of the lawsuit is asking how WBD came up with valuations for its cable networks group, which includes CNN, TNT, TBS and others.

Paramount also wants to know specific details with regard to how debt in the Netflix deal affects the WBD transaction.

As part of its now hostile offer for the company, it also plans to nominate its own WBD board of directors.