Netflix has made a major strategic move in its effort to acquire Warner Bros. Discovery (WBD) by modifying its original offer to be entirely in cash, keeping the transaction value at approximately US$82.7 billion and offering US$27.75 per share in cash to WBD shareholders. The proposal has been unanimously approved by the boards of both companies and aims to speed up regulatory approval and provide greater certainty of value to investors.
The revision comes partly in response to pressure from a competing, unconditional bid from Paramount Skydance, which is seeking to acquire Warner Bros. for more than US$108 billion. Netflix and WBD argue that the all-cash structure simplifies the deal and allows for a faster path toward a shareholder vote, expected in April 2026.
In addition, Warner Bros. shareholders will continue to receive added value through shares in the spun-off company Discovery Global, which will be separated before the acquisition is finalized.
Why is Netflix’s move so significant?
Because by offering a fully cash-based payment, Netflix removes uncertainty tied to stock fluctuations, strengthens its competitive position, and could accelerate approval of the deal.