Netflix increases all-cash offer to $83 billion in revised Warner Bros. deal to fend off Paramount

Netflix has made a bold move in the streaming entertainment world by revising its bid to acquire Warner Bros. Discovery’s studios and streaming business. In an effort to stay ahead of Paramount Skydance’s hostile bid to acquire Warner, Netflix has shifted its offer to an all-cash deal.

The updated offer from Netflix now stands at $27.75 per share in cash for each Warner Bros. Discovery shareholder, totaling $83 billion for Warner’s studio and streaming business. This change provides a sense of certainty to Warner’s shareholders, eliminating concerns about the fluctuating stock price of Netflix.

With this new offer, Netflix aims to expedite the deal process, anticipating a shareholder vote on the proposed acquisition by April 2026. Initially, Netflix’s bid had been a combination of cash and stock, offering $23.25 in cash and $4.50 in Netflix common stock for each Warner Bros. Discovery share.

In response to Netflix’s bid, Paramount Skydance launched a competitive offer of $108 billion to acquire all of Warner Bros. Discovery’s assets, valuing the company at $30 per share. However, Warner’s board deemed Paramount’s offer inferior and urged shareholders to reject it. Despite Paramount’s efforts to improve its bid with financial backing from Larry Ellison, Warner’s leaders remain steadfast in their support of the Netflix deal.

If approved by shareholders, the deal with Netflix will lead to a split of Warner Bros. Discovery into two separate entities. The Warner Bros. arm, to be acquired by Netflix, includes the company’s TV and film studio businesses, such as Warner Bros. Television, Warner Bros. Motion Picture Group, and DC Studios, along with HBO Max. On the other hand, Discovery Global will become a standalone publicly traded company comprising television networks like CNN, TNT, and Discovery.

As the battle for control of Warner Bros. Discovery continues, Paramount Skydance has announced plans to launch a proxy fight for control of the company’s board. Paramount intends to nominate directors who are willing to engage with its offer and challenge the Netflix deal if the board seeks a vote before the shareholder meeting.

The streaming entertainment landscape is evolving rapidly, and these developments between Netflix, Paramount, and Warner Bros. Discovery are crucial to watch. Stay tuned for updates on this ongoing saga in the world of streaming entertainment.