Netflix Switches to All-Cash $82.7bn Bid for Warner Bros Discovery to Fend Off Paramount

Netflix has revised its takeover proposal for Warner Bros Discovery, switching to an all-cash offer valued at $27.75 per share while maintaining the overall deal value at $82.7 billion, in a move aimed at shutting out rival interest from Paramount Skydance.

The revised offer, disclosed in a regulatory filing on Tuesday, has received unanimous approval from the Warner Bros Discovery board. Netflix said the all-cash structure would enable a faster shareholder vote and provide greater financial certainty for investors.

Netflix and Paramount Skydance have been locked in a competitive race to acquire Warner Bros Discovery, attracted by its film and television studios, vast content library, and major franchises such as Game of Thrones, Harry Potter, and DC Comics properties including Batman and Superman. While Paramount has maintained that its bid is superior, Warner Bros Discovery has continued to back Netflix’s proposal.

Netflix co-CEO Ted Sarandos said the revised structure would accelerate the timeline toward a shareholder vote, which is expected to take place by April. Following the announcement, Netflix shares edged higher in early trading, while shares of Paramount and Warner Bros Discovery declined.

The new proposal replaces Netflix’s earlier cash-and-stock offer, which was weakened by a drop in Netflix’s share price after the deal was announced in December. Warner Bros Discovery said the fixed cash consideration provides certainty of value and immediate liquidity for shareholders.

The board also reaffirmed its view that Netflix’s offer remains superior to Paramount Skydance’s $30-per-share all-cash bid, citing the additional benefit that Warner Bros Discovery shareholders would retain an interest in a planned spin-off entity, Discovery Global. The spin-off is expected to house cable television assets including CNN, TNT Sports, and the Discovery+ streaming service.

Paramount’s tender offer is due to expire on January 21, and analysts say the bidding contest may not yet be over, although pressure is mounting on Paramount to improve its proposal. Any transaction is also expected to face regulatory scrutiny amid growing concerns over consolidation within the global media industry.