Netflix Switches To All-Cash Bid For Warner Bros Discovery
Netflix has revised its takeover proposal for Warner Bros Discovery’s streaming and film division, confirming it will now fund the acquisition entirely in cash. The move is seen as a strategic effort to outpace rival bidder Paramount Skydance in the race to secure the Hollywood studio.
Originally, Netflix planned to structure the deal using a combination of cash and company shares. However, in a joint statement, both companies said the updated all-cash offer would give shareholders greater certainty and allow for a faster approval process.
The development comes as Paramount Skydance, backed by tech billionaire Larry Ellison and his family, continues to push forward with its own bid despite repeated setbacks. Paramount has maintained that its proposal offers better value and has even taken legal action to force Warner Bros to disclose financial details of Netflix’s offer.
Under Netflix’s proposal, the company would gain control of Warner Bros’ extensive content library, including major franchises such as Harry Potter and Game of Thrones, as well as streaming platform HBO Max. The offer remains priced at $27.75 per share, valuing the streaming and film business at approximately $72 billion. When debt is factored in, the total enterprise value rises to about $82 billion.
Warner Bros shareholders are also expected to receive shares in the company’s remaining assets, including CNN and other networks, which are set to be spun off into a separate publicly traded entity.
Paramount, however, has argued that these remaining networks are significantly overvalued. The company insists its own $30-per-share bid — which values Warner Bros at about $108 billion — represents the stronger offer.
Warner Bros leadership has so far stood by Netflix, raising concerns over how Paramount plans to finance its proposal. Board chairman Samuel Di Piazza Jr described the amended deal as proof of the board’s commitment to shareholder value.
He said the all-cash structure would allow the company to deliver “even greater certainty” for investors while still enabling them to benefit from the planned spinoff of other Warner Bros brands.
Despite this, critics have expressed concerns that either merger would concentrate too much power within a single entertainment company.
Investor sentiment also appears cautious. Since the deal was first announced, Netflix shares have dropped by more than 10 percent. The stock slipped again in after-hours trading on Tuesday, even after the company reported strong financial results for the final quarter of 2025.
Netflix revealed quarterly revenue grew 18 percent year-on-year to over $12 billion, with advertising contributing more than $1.5 billion. Profits rose nearly 30 percent to $2.4 billion, while global paid subscriptions climbed past 325 million.
In a letter to shareholders, Netflix defended the proposed acquisition, describing both companies’ operations as “highly complementary.” The streaming giant said the deal would expand its film and television catalogue, improve personalised viewing experiences, and boost investment in US-based productions.
“Together, we’ll create more opportunities for creators and strengthen the entire entertainment industry,” the company stated.
