Netflix has escalated its battle for Warner Bros. Discovery by revising its takeover offer into an all-cash deal, a move designed to counter Paramount’s hostile bid and reassure shareholders.
Under the updated agreement, Netflix will pay $27.75 per share in cash for Warner Bros. Discovery’s streaming and movie studio assets, keeping the total equity value at about $72 billion. The enterprise value, including debt, stands near $82.7 billion.
The change replaces the original mix of cash and Netflix stock, removing market volatility from the transaction and offering shareholders a guaranteed payout. Netflix said the deal will be financed through cash reserves, credit facilities and committed financing.
If approved, the acquisition will bring HBO, Warner Bros. Studios and related properties under Netflix’s control. Warner Bros. Discovery plans to spin off its cable television networks into a separate company called Discovery Global before the deal closes.
Warner Bros. Discovery chairman Samuel Di Piazza Jr. said the all-cash structure gives shareholders greater certainty while allowing them to benefit from Discovery Global’s future growth.
Paramount, led by CEO David Ellison, has been attempting to derail the Netflix agreement with its own $30-per-share offer for the entire Warner Bros. Discovery company. Paramount argues that its proposal is financially superior and has challenged Warner Bros. Discovery in court over disclosure practices.
However, Warner Bros. Discovery has dismissed Paramount’s bid as risky, citing Paramount’s heavy debt, weaker cash flow and dependence on traditional television. A Delaware judge recently rejected Paramount’s request to fast-track its lawsuit.
Industry analysts say Netflix’s stronger balance sheet and investment grade credit rating make its bid more likely to succeed.
A shareholder vote on the Netflix deal is expected in April 2026, pending regulatory review. If approved, the transaction would mark one of the largest media mergers in history and reshape the competitive landscape of global streaming.
