Netflix Crimps Down on Warner Bros Bid with All-Cash Offer as Paramount Skews the Process
In a move to streamline its pursuit of Warner Bros Discovery (WBD), streaming giant Netflix has sweetened its $82.7 billion offer by transitioning it into an all-cash deal, aiming to expedite completion in the face of a hostile bid from rival company Paramount Skydance.
Originally, Netflix secured the unanimous backing of WBD's board with a cash-and-shares proposal valued at $27.75 per share. However, the two companies have now switched to an all-cash offer at the same valuation as the original deal, citing that this simplifies the transaction structure and provides greater financial certainty for WBD stockholders.
Ted Sarandos, co-CEO of Netflix, stated that the revised all-cash agreement will enable an expedited timeline to a stockholder vote, allowing investors to weigh in on the proposed deal as soon as April. "Our revised all-cash agreement will enable an expedited timeline to a stockholder vote and provide greater financial certainty at $27.75 per share in cash," he said.
In contrast, Paramount Skydance has continued its hostile bid for WBD, planning to nominate directors to the board to vote against the approval of the Netflix deal. The company has filed a lawsuit seeking disclosure of financial information related to the agreement but had its suit rejected by a Delaware court judge last week.
To win what is known as a proxy fight, Paramount will need to convince enough WBD investors to cast their votes in favor of its nominees and replace existing or new directors proposed by WBD's board. The company has also proposed an amendment to WBD's bylaws requiring shareholder approval for the planned spin-off of the global networks business.
Under the terms of Netflix's deal, WBD would take control of prized assets such as Warner Bros and HBO, home to popular shows like Game of Thrones and Succession. In the event that WBD were to walk away from the agreement, it would incur significant costs, including a $2.8 billion breakup fee.
Despite these challenges, Netflix appears confident in its ability to secure government approval for the acquisition. "We're working really hard to close the acquisition of Warner Bros Studios and HBO, which we see as a strategic accelerant," said Sarandos.
The deal has seen shares in WBD drop 4.5% following the announcement, while analysts have projected annual revenue at between $50.7 billion and $51.7 billion for 2026. Netflix, on the other hand, has reported surpassing 325 million subscribers, bolstered by the return of hit shows like Stranger Things and Nobody Wants This.
In a move to streamline its pursuit of Warner Bros Discovery (WBD), streaming giant Netflix has sweetened its $82.7 billion offer by transitioning it into an all-cash deal, aiming to expedite completion in the face of a hostile bid from rival company Paramount Skydance.
Originally, Netflix secured the unanimous backing of WBD's board with a cash-and-shares proposal valued at $27.75 per share. However, the two companies have now switched to an all-cash offer at the same valuation as the original deal, citing that this simplifies the transaction structure and provides greater financial certainty for WBD stockholders.
Ted Sarandos, co-CEO of Netflix, stated that the revised all-cash agreement will enable an expedited timeline to a stockholder vote, allowing investors to weigh in on the proposed deal as soon as April. "Our revised all-cash agreement will enable an expedited timeline to a stockholder vote and provide greater financial certainty at $27.75 per share in cash," he said.
In contrast, Paramount Skydance has continued its hostile bid for WBD, planning to nominate directors to the board to vote against the approval of the Netflix deal. The company has filed a lawsuit seeking disclosure of financial information related to the agreement but had its suit rejected by a Delaware court judge last week.
To win what is known as a proxy fight, Paramount will need to convince enough WBD investors to cast their votes in favor of its nominees and replace existing or new directors proposed by WBD's board. The company has also proposed an amendment to WBD's bylaws requiring shareholder approval for the planned spin-off of the global networks business.
Under the terms of Netflix's deal, WBD would take control of prized assets such as Warner Bros and HBO, home to popular shows like Game of Thrones and Succession. In the event that WBD were to walk away from the agreement, it would incur significant costs, including a $2.8 billion breakup fee.
Despite these challenges, Netflix appears confident in its ability to secure government approval for the acquisition. "We're working really hard to close the acquisition of Warner Bros Studios and HBO, which we see as a strategic accelerant," said Sarandos.
The deal has seen shares in WBD drop 4.5% following the announcement, while analysts have projected annual revenue at between $50.7 billion and $51.7 billion for 2026. Netflix, on the other hand, has reported surpassing 325 million subscribers, bolstered by the return of hit shows like Stranger Things and Nobody Wants This.
i mean $82.7 billion is crazy talk but at the same time, think about it, wbd's gotta pay out like $2.8 billion for brek up lol what a waste!
. So, they're both trying to buy Warner Bros Discovery (WBD), but in different ways? One company is offering cash and shares, while the other is just making an all-cash offer. Why is that important? Can't they just make a deal like normal? 
. One minute it's one company, the next minute it's another. And what about all the lawyers and judges involved? Do they really have to sue each other over who gets to make decisions? 
. They're like "we've got 325 million subscribers, we know what we're doing". But the other company seems pretty confident too... Paramount Skydance and all that 
.
. All-cash offer or not, they're still gonna have to figure out how to make this deal work with Paramount throwing some obstacles their way. I'm rooting for Netflix though, Sarandos seems like a pro and he's definitely got the right strategy to get this done ASAP 
. Can't wait to see how it all plays out in April 
. And honestly, I think Paramount's hostile bid might be a better option for investors 
.
i mean they've sweetened the deal with an all-cash offer and now we might see this happen ASAP 
ted sarandos said it himself that they're working hard to make this happen and i believe him 100% 
netflix has the cash and the willpower to get this done 
. think about it, if you're in a situation where someone else is trying to strong-arm you into something, what do you do? you either negotiate or you walk away, and that's exactly what wbd is doing here. they're choosing not to get taken for a ride by netflix's offer. and let's be real, who can blame them? an all-cash deal might seem like the easier route, but it's also super limiting. sometimes you gotta take some risks and stick to your guns