Netflix Shifts to All-Cash Offer
- Buster Wurm
- 2 days ago
- 2 min read
Netflix has amended its bid to acquire Warner Bros. Discovery’s studio and streaming businesses, converting the offer to an all-cash deal amid escalating competition with Paramount and intensifying scrutiny from investors and regulators. The revised structure replaces the earlier cash-and-stock proposal with a $27.75-per-share cash offer, keeping the transaction’s total equity value at roughly $72 billion.
The move is designed to accelerate shareholder approval and counter Paramount’s argument that its rival bid is financially superior. Warner Bros. plans to call a special shareholder meeting, with a vote expected by April, signaling confidence that the revised terms can move the deal forward quickly.
Under the updated agreement, Warner Bros. will still spin off its cable networks, including CNN and TNT, into a separate company known as Discovery Global. Warner disclosed that stronger-than-expected cash flow enabled the parties to reduce the debt assigned to the spun-off entity by $260 million, addressing concerns about leverage in the remaining cable business.
The filings also provided new financial projections, showing that Discovery Global is expected to generate about $17 billion in revenue in 2026, with earnings expected to decline later in the decade as cord-cutting pressures persist. Warner’s advisers placed a wide valuation range on the cable assets, rebutting Paramount’s claim that those businesses are effectively worthless.
For Netflix, the all-cash structure removes a share-price “collar” that previously exposed Warner shareholders to swings in Netflix stock, which has declined since the deal was announced. Netflix has arranged additional bridge financing from Wall Street banks to support the transaction and says it remains confident the acquisition will clear up regulatory review.
The contest for Warner Bros. has become one of the largest media takeover battles in years, with the outcome poised to reshape Hollywood’s competitive landscape as traditional studios and streaming giants race to secure scale, content libraries, and long-term relevance in a rapidly evolving entertainment industry.
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