Netflix Switches to All-Cash Warner Bros Bid, Secures Board Backing to Fend Off Paramount

LOS ANGELES | Jan 20 (GeokHub) Netflix has overhauled its takeover strategy for Warner Bros. Discovery, submitting an all-cash offer valued at $82.7 billion in a decisive move to block rival suitor Paramount Skydance from acquiring the Hollywood powerhouse.

Under the revised proposal, Netflix will pay $27.75 per share in cash, replacing its earlier cash-and-stock structure without increasing the headline valuation. Warner Bros.’ board has unanimously endorsed the deal, citing greater certainty and a faster path to shareholder approval.

Netflix said the change would allow an expedited vote by Warner Bros investors, which is expected to take place by April. Co-CEO Ted Sarandos said the revised structure provides “greater financial certainty” and removes market volatility from the equation.

Warner Bros. has emerged as one of the most coveted assets in global media, owning major studios, a vast film and television library, and franchises including Harry Potter, Game of Thrones, and DC Comics’ superhero universe.

Pressure Mounts on Paramount

Paramount Skydance, led by David Ellison, has continued to press its own $30-per-share all-cash bid, arguing it offers superior value. Warner Bros., however, has repeatedly rejected the offer, maintaining that its shareholders would benefit more from Netflix’s proposal — particularly through retained ownership in a planned cable and television spin-off, Discovery Global.

Paramount’s tender offer is set to expire on January 21, intensifying pressure on the company to either raise its bid or walk away. Analysts say Netflix’s move significantly raises the stakes.

“This change shows Netflix is serious about winning,” said Alex Fitch, a portfolio manager at Harris Oakmark, one of Warner Bros.’ largest shareholders. “It forces Paramount to act quickly if it wants to stay in the race.”

Market Reaction and Financial Considerations

Following the announcement, Netflix shares edged higher, while Warner Bros. and Paramount shares slipped modestly in early trading. Netflix stock has fallen since the original deal was announced in December, a decline Paramount had pointed to as a weakness in the earlier bid.

By switching to cash, Netflix removes concerns tied to its share price and emphasizes its financial strength, including its investment-grade credit rating — a sharp contrast to Paramount’s junk-rated debt.

The combined Netflix-Warner entity would carry significant debt, but analysts say Netflix’s scale and balance sheet make the structure more manageable than a Paramount-led merger. Netflix has also agreed to adjust debt allocations related to the Discovery Global spin-off, according to regulatory filings.

Regulatory Hurdles Remain

While board approval represents a major milestone, the deal still faces scrutiny from regulators. Lawmakers across the political spectrum have raised concerns that further consolidation in the media industry could reduce competition and drive up consumer prices.

Even so, analysts note that Netflix’s financial profile and global reach may give it a clearer path forward than its smaller rival.