Netflix on Tuesday has revised its $83 billion cash-and-stock bid to acquire Warner Bros. Discovery’s (WBD) studios and streaming business into an all-cash offer, a move seen as a strategy to counter Paramount Skydance’s hostile bid.
The streaming giant now offers WBD shareholders $27.75 per share entirely in cash for the studio and streaming assets, including HBO Max.
Netflix said the change provides shareholders with “enhanced certainty” amid fluctuations in its stock price and could accelerate the timeline for shareholder approval, expected by April 2026.
The company’s original deal, approved by Warner’s board, offered WBD shareholders $23.25 in cash plus $4.50 worth of Netflix shares per WBD share. Under the revised terms, shareholders would receive only cash.
What they are saying
Netflix and Warner executives framed the revised deal as a stronger strategic alignment for the entertainment industry.
“Today’s revised merger agreement brings us even closer to combining two of the greatest storytelling companies in the world and, with it, even more people enjoying the entertainment they love to watch the most,” said David Zaslav, President and CEO of Warner Bros. Discovery.
“By coming together with Netflix, we will combine the stories Warner Bros. has told that have captured the world’s attention for more than a century and ensure audiences continue to enjoy them for generations to come.”
“The WBD Board continues to support and unanimously recommend our transaction, and we are confident that it will deliver the best outcome for stockholders, consumers, creators and the broader entertainment community,” said Ted Sarandos, co-CEO of Netflix.
“Our revised all-cash agreement will enable an expedited timeline to a stockholder vote and provide greater financial certainty at $27.75 per share in cash, plus the value from the planned separation of Discovery Global.”
The executives added that combining Netflix and Warner Bros. would expand production capacity, boost original content investment, and create jobs across the U.S. entertainment sector.
Backstory
Paramount Skydance’s rival offer has complicated Netflix’s acquisition plans. In December 2025, Paramount launched a $108 billion hostile bid for all of WBD’s assets, valuing the company at $30 per share.
The bid was initially criticized by Warner’s board as inferior because it included a $40.65 billion equity offer without a family backing commitment. Paramount later secured an “irrevocable” $40 billion financial commitment from Larry Ellison, CEO David Ellison’s father, but Warner’s board continued to urge shareholders to reject the offer.
If Netflix’s all-cash bid is approved, WBD will proceed with its planned split. The Warner Bros. arm, acquired by Netflix, will include the company’s TV and film studio businesses Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios and streaming service HBO Max. Discovery Global, covering networks such as CNN, TNT, and Discovery Channel, will be spun off into a separate publicly traded company.
