Netflix is ​​reviewing its offer to pay all cash to Warner Bros. to stave off Paramount

In an attempt to smooth the situation for Warner Bros. shareholders, Discovery (WBD), Netflix is ​​now offering cash in exchange for company stock, by reviewing the cash and stock deal it struck with WBD’s board earlier.

However, the streaming giant is still offering the same $27.75 the companies agreed to for the movie studio and WBD’s streaming assets, and the deal continues to value the company at $82.7 billion.

The new offer simplifies the deal structure, “provides greater certainty of value,” and accelerates the timeline for shareholder votes, the companies said in a statement on Tuesday. Netflix said it will finance the deal with cash, debt and “committed financing.”

The change comes as rival Paramount Skydance ramps up its efforts to win over WBD shareholders with its all-cash offer of $30 per share for the entire company, including taking a $40 billion guarantee from CEO David Ellison’s billionaire father, Oracle co-founder Larry Ellison.

Paramount also last week sued WBD seeking more information about the Netflix show and said it would nominate new cast members to Warner Bros. Board of Directors, after WBD rejected his offer. The company also sought to expedite the lawsuit, but the court rejected this effort.

For its part, Netflix has so far been committed to its original cash and stock offer, and has the full support of WBD’s board of directors, which has firmly rejected Paramount’s offers. WBD argued that a sale to Netflix would result in a better deal because the streaming giant has the capital to pay, and said the Paramount deal poses “materially greater risks,” because it would saddle the combined company with $87 billion in debt.

Warner Bros. also questioned Paramount’s ability to operate after the deal was completed, arguing that raising such amounts of debt would worsen Paramount’s existing “junk” credit rating, and raising concerns about Paramount’s negative free cash flow, which might be exacerbated by the acquisition.