Netflix Switches To An All-Cash Bid For Warner Bros
Netflix has changed its approach in the fight to buy Warner Bros Discovery’s streaming and film business, switching to an all-cash offer as it tries to outmanoeuvre a hostile bid from Paramount Skydance.
The revised proposal drops the earlier plan to partly pay with Netflix shares, but keeps the headline price the same. Warner Bros shareholders would still receive $27.75 per share, valuing the streaming and film assets at about $72bn and the full enterprise, including debt, at roughly $82.7bn.
Netflix and Warner Bros said the change gives shareholders more clarity and speeds things up. In a joint statement, they said the all-cash structure “provides enhanced certainty” and clears the way for an “expedited timeline” to a shareholder vote, which could come as early as April next year.
The deal would hand Netflix control of Warner Bros’ film studios and streaming business, including HBO Max and major franchises such as Harry Potter and Game of Thrones. Other parts of Warner Bros, including CNN and cable networks under Discovery Global, are not included and are still expected to be spun off into a separate public company before Netflix takes over.
Paramount Skydance, backed by tech billionaire Larry Ellison and led by his son David Ellison, has refused to back down. It has offered $30 per share for all of Warner Bros Discovery, including the cable networks, and is pressing ahead with legal action to force more disclosure around the Netflix deal. Paramount argues its bid offers better value, especially given its belief that the networks Netflix is leaving behind are worth less than Warner Bros claims.
Warner Bros’ board, however, has stayed firmly behind Netflix. Board chair Samuel Di Piazza Jr said the amended agreement shows the board’s focus on shareholders and that moving to cash allows it to “deliver the incredible value of our combination with Netflix at even greater levels of certainty”.
Netflix executives have also pushed back against criticism that the merger would concentrate too much power in one company. Co-chief executive Ted Sarandos said: “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 theatres.” He added that the deal would expand US production and “drive job creation and long-term industry growth”.
The takeover battle has broader implications for Hollywood. A Netflix-Warner Bros tie-up would rank among the biggest media deals ever and could reshape how films reach cinemas, given Netflix’s preference for short theatrical runs or direct-to-streaming releases. A Paramount Skydance victory, on the other hand, would put CNN and CBS News under the same ownership, raising concerns about media concentration and political influence.
For now, Netflix’s cash move puts the pressure back on Paramount as regulators, shareholders and the White House loom over what could be a defining moment for the entertainment industry.
