Netflix has increased its $82.7 billion (£61.5 billion) offer for the studios and streaming businesses of Warner Bros Discovery (WBD) by making it an all-cash deal, aiming to speed up the process in the face of a competing hostile bid from Paramount Skydance.
Last month, Netflix initially secured the unanimous support of the WBD board with a cash-and-shares proposal valuing the company at $27.75 per share. Both companies now say that switching to an all-cash offer at the same valuation—a move first reported last week—simplifies the transaction, gives WBD stockholders more certainty on value, and allows for a quicker shareholder vote.
Netflix stated the revised offer could enable a WBD investor vote as early as April. Ted Sarandos, Netflix’s co-chief executive, said: “Our revised all-cash agreement will allow for a faster timeline to a stockholder vote and provides greater financial certainty at $27.75 per share in cash, plus the value from the planned separation of Discovery Global.”
He added: “The WBD Board continues to support and unanimously recommend our transaction, and we are confident it will deliver the best outcome for stockholders, consumers, creators, and the broader entertainment community.”
Upon completion of the deal, WBD investors will also receive shares in its global networks division—which includes CNN, Cartoon Network, and the Discovery Channel—as this part of the business is being spun off into a separate company and is not included in Netflix’s purchase.
Meanwhile, Paramount continues to pursue its own $108.4 billion all-cash takeover of the entirety of WBD, a hostile bid aimed at persuading investors to accept its offer and override the board’s agreement with Netflix.
Last week, Paramount said it planned to nominate directors to WBD’s board to vote against the Netflix deal and filed a lawsuit seeking financial details related to the agreement. However, a Delaware court judge rejected that lawsuit on Thursday.
Paramount aims to nominate directors at WBD’s annual meeting, typically held in June, in an attempt to block the Netflix deal. To win this proxy fight, Paramount would need to convince enough WBD investors to vote for its nominees and replace directors backed by WBD’s board.
Paramount has also stated its intention to propose an amendment to WBD’s bylaws that would require shareholder approval for the planned spin-off of the global networks business.
Under the Netflix agreement, the streaming giant would gain control of key WBD assets such as Warner Bros—the studio behind franchises like Harry Potter, Superman, and Batman—as well as HBO, home to series including Game of Thrones, The White Lotus, and Succession.
WBD’s board has twice advised shareholders to reject Paramount’s $108.4 billion hostile bid, describing it as “inadequate” and the “largest leveraged buyout in history,” while warning that its structure carries significant risks.
If WBD walks away from its deal with Netflix, it would have to pay a $2.8 billion breakup fee. Paramount Skydance has since increased its own termination fee to $5.8 billion to match Netflix’s terms.
However, WBD has estimated that accepting Paramount’s offer would result in about $4.7 billion in costs, including the breakup fee to Netflix, additional interest on debt, and a $1.5 billion penalty for not completing a debt exchange.
Frequently Asked Questions
Of course Here is a list of FAQs about Netflixs reported allcash offer for Warner Bros designed to cover a range of questions from basic to more advanced
Basic Definition Questions
1 Whats the big news about Netflix and Warner Bros
The news is that Netflix has reportedly made an allcash offer to buy Warner Bros from its parent company Warner Bros Discovery They are trying to outbid another potential buyer Paramount Global
2 What does an allcash offer mean
It means Netflix is offering to pay for Warner Bros entirely with cash on hand not with a mix of cash and stock or by taking on a huge amount of new debt to finance the deal This can make an offer more attractive and simpler for the seller
3 Who currently owns Warner Bros
Warner Bros is currently owned by Warner Bros Discovery a media conglomerate formed in 2022 by merging WarnerMedia with Discovery Inc
4 Why would Netflix want to buy Warner Bros
Primarily for its massive library of iconic content and its powerhouse film and TV production studios This would instantly give Netflix a huge vault of owned intellectual property and toptier production capability
Strategic Industry Impact Questions
5 Why is Netflix trying to outbid Paramount
Paramount Global is also reportedly interested in acquiring Warner Bros or merging with WBD Netflix is making a strong direct offer to try to win the deal before any agreement with Paramount is reached
6 What would this mean for my Netflix subscription
In the short term likely nothing In the long term if the deal happens you could see a lot of Warner Bros movies and shows become Netflix Originals potentially reducing the amount of licensing to other services
7 Would HBO Max disappear and merge into Netflix
Not necessarily The deal is reported to be for the Warner Bros studio and IP library not necessarily for the Max streaming service itself However Netflix would then own the content that currently fuels Max which would create a huge strategic dilemma for WBD
