Netflix has proposed an all-cash deal to acquire Warner Bros.

Netflix Revises Acquisition Terms to Strengthen Position Against Competitors In a strategic move to bolster its bid amid rising competition, Netflix has updated the terms of its landmark acquisition of Warner Bros. Discovery (WBD). The streaming giant has shifted to an all-cash transaction structure, aiming to make its offer more attractive and secure its dominance over rival bidders, including Paramount and Skydance. Revised Deal Details and Valuation Under the new agreement, Netflix will provide WBD shareholders with a straight cash payment of $27.75 per share. The overall deal remains valued at approximately $82.7 billion, consistent with previous estimates. The initial terms, announced on December 5, proposed a mix of cash and stock—about 84% in cash and the remainder in Netflix shares—introducing potential volatility and risk if Netflix’s stock price declined before closing. Rationale Behind the Term Adjustment Netflix stated that the primary reasons for this revision are to “simplify the transaction structure,” enhance “certainty of value for WBD shareholders,” and “accelerate the approval process.” By offering an all-cash deal, Netflix reduces exposure to market fluctuations, providing shareholders with a clear and guaranteed payout, thereby increasing confidence in the transaction’s finality. Accelerating Approval and Closing Timeline The updated terms also aim to speed up the deal’s approval process, with shareholder voting now potentially scheduled as early as April 2026. Recently, WBD filed the necessary documentation with the U.S. Securities and Exchange Commission (SEC) to align with this accelerated timeline. In summary, Netflix’s strategic adjustment to an all-cash bid underscores its intent to make its offer more compelling and reduce risks amidst fierce competition from Paramount Skydance. This move signifies a proactive effort to finalize the acquisition swiftly and strengthen its position in the highly competitive streaming landscape.