Netflix goes all-cash in Warner Bros. Discovery acquisition

Netflix has revised its offer for Warner Bros. Discovery, converting the deal into an all-cash transaction as it seeks to simplify the merger process and accelerate shareholder approval.

Under the revised agreement, Netflix will acquire Warner Bros. at $27.75 per share, maintaining the same valuation as its earlier cash-and-stock proposal. The deal values Warner Bros. Discovery at approximately $72 billion, while also allowing shareholders to receive additional value through shares of Discovery Global following its planned separation.

Netflix and Warner Bros. said the updated structure offers greater certainty to investors and shortens the timeline to a shareholder vote. Both companies’ boards have approved the amended all-cash agreement.

Strategic expansion for Netflix

Netflix co-CEO Ted Sarandos said the merger would strengthen the company’s global content pipeline and theatrical presence.

“Together, Netflix and Warner Bros. will deliver broader choice and greater value to audiences worldwide, enhancing access to world-class television and film both at home and in theaters,” Sarandos said. “The acquisition will also significantly expand U.S. production capacity and investment in original programming, driving job creation and long-term industry growth.”

Warner Bros. Discovery has already announced plans to split into two publicly traded companies — Warner Bros. and Discovery Global — a separation expected to be completed within six to nine months, ahead of the Netflix transaction. The Netflix-Warner Bros. deal itself is expected to close within 12 to 18 months of the original merger agreement.

Rival bid battle intensifies

Netflix’s move comes amid an ongoing takeover battle with Paramount Skydance, which has launched a hostile bid for Warner Bros. Paramount recently said it would nominate its own board slate and has filed a lawsuit in Delaware seeking greater transparency on how Warner Bros. values the competing offers.

Despite Paramount’s efforts to improve its $77.9 billion bid, Warner Bros.’ leadership has continued to back Netflix’s proposal and urged shareholders to support the deal.

Following the announcement, Netflix shares rose 1.3% in premarket trading, while Warner Bros. Discovery stock edged slightly lower.