Netflix switches its Warner Bros offer to all-cash deal to quell Paramount

Netflix has revised its offer to acquire Warner Bros Discovery's studio and streaming assets, switching to an all-cash deal of $82.7 billion ($27.75 a share) to counter Paramount Skydance's competing bid. The Warner Bros board unanimously supports the Netflix offer, aiming to expedite the stockholder vote, expected by April 2026. Both Netflix and Paramount are vying for Warner Bros' extensive content library and major franchises. Paramount has been actively promoting its bid, but Warner Bros has favored Netflix. While Netflix and Warner Bros shares saw a slight increase, Paramount's shares declined following the announcement. Despite the all-cash offer, some investors believe a bidding war could still emerge.

Netflix has intensified its bid for Warner Bros. Discovery by offering an all-cash deal valued at $72 billion. The revised agreement simplifies the structure of the transaction, providing more certainty for Warner stockholders and speeding up the path to a shareholder vote, which could occur as early as April. The deal is still valued at $27.75 per share, with Warner stockholders also receiving additional shares of Discovery Global, a separate public company that will result from the separation announced previously. Both Netflix and Warner leadership have approved the all-cash deal. This move comes after a previous cash and stock deal in December, which was valued at $82.7 billion. The bid is an attempt to win over Warner's shareholders and potentially thwart a hostile bid from Skydance-owned Paramount.

Netflix is pursuing Warner Bros Discovery's studio and streaming businesses with an amended all-cash offer of $82.7 billion, aiming to outmaneuver rival Paramount. Warner Bros' board unanimously supports the Netflix bid, which involves Netflix paying $27.75 per share in cash for the film and television studios, content library, and HBO Max streaming service. This revised agreement replaces a previous cash-and-stock offer. Netflix's move comes as Paramount aggressively campaigned to convince shareholders its bid was superior. News of the deal initially saw Netflix shares rise slightly before falling almost 15% since the merger announcement on December 5th.