Netflix has announced that it is evaluating a shift from its current cash‑and‑stock structure to a fully cash‑based offer for Warner Bros. Discovery (WBD). The change would replace the $4.50 in Netflix stock per WBD share with an additional $4.50 in cash, keeping the total value of the transaction at $27.75 per share and an enterprise value of roughly $82.7 billion.
The original agreement, reached on December 5, 2025, gave WBD shareholders $23.25 in cash and $4.50 in Netflix stock for each share. The proposed all‑cash adjustment would simplify the financing process, reduce the need for additional debt or equity issuance, and potentially speed approval by WBD shareholders and regulators.
Paramount Skydance has entered the fray with a competing all‑cash bid of $30 per share, valuing the company at $108.4 billion. Netflix’s move to an all‑cash offer is a strategic response designed to match the liquidity of Paramount’s proposal, thereby strengthening its position in the bidding war and mitigating concerns about dilution and financing risk.
Financially, Netflix reported Q3 2025 earnings of $5.87 per share on revenue of $11.51 billion, missing analyst estimates but showing resilience amid a challenging streaming environment. WBD, by contrast, posted a Q3 2025 loss of $0.06 per share on $9.05 billion in revenue, underscoring the urgency for a decisive transaction that could stabilize the company’s cash flow and debt profile.
Strategically, the acquisition would give Netflix a deep, historic content library and expanded studio capabilities, addressing a long‑standing gap in its catalog compared to rivals such as Disney and Amazon. The deal would also allow Netflix to spin off WBD’s cable networks into a separate entity, Discovery Global, potentially creating a more focused streaming platform.
Investors have reacted positively to the announcement, with analysts noting that an all‑cash offer could reduce regulatory friction and accelerate the closing timeline. The move also signals Netflix’s confidence in its ability to secure the necessary financing and to deliver a smoother integration process.
The transaction will still require approval from WBD shareholders, regulatory review, and the alignment of financing arrangements. Both companies have indicated that the deal remains a priority, and the next steps will involve detailed negotiations on the final cash terms and the timing of the transaction’s completion.
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