Netflix revealed a new all cash deal for Warner Bros Discovery on Tuesday. The company said the offer keeps the price at $27.75 per share but removes the $4.50 Netflix stock component that appeared in the December proposal. By using cash only, Netflix aims to give shareholders certainty and speed up the vote timeline.
Key Terms of the Deal
The revised agreement still values the combined studio and streaming assets at about $82.7 billion. It also respects the planned spin‑off of Discovery Global, which will remain separate. Netflix expects the split of Warner Bros Discovery to happen within six to nine months, after which it will take control of the film studio and the streaming platform.
Impact on Competing Bids
Paramount Skydance continues to push a hostile bid that includes the cable networks owned by Discovery. That offer proposes $30 per share and relies on acquiring the Discovery portion that Netflix is leaving behind. The all cash deal from Netflix puts pressure on Paramount by shortening the timeline for a shareholder vote, which is now expected by April 2026.
What This Means for the Industry
Analysts say the Netflix all cash deal could reshape the media industry merger landscape. By eliminating market‑based variability, both Netflix and Warner Bros Discovery give investors a clearer picture of future cash flows. The move also signals a broader streaming giant expansion as Netflix prepares to add Warner Bros’ library to its catalog.
The boards of both companies approved the amendment unanimously. The transaction still requires regulatory clearance, approval from Warner Bros Discovery shareholders, and the completion of the Discovery Global spin‑off. If all conditions are met, Netflix will combine two of the world’s strongest storytelling brands.
Industry observers note that the deal may boost U.S. production capacity and create jobs in original programming. It could also increase competition for other streaming services by delivering more content under one subscription.
Meanwhile, Netflix plans to report its fourth‑quarter earnings on Tuesday. Shares in the streaming giant rose 1 percent in pre‑market trading after the announcement.
Source: Deadline
