Netflix Wants to Secure Warner Bros Acquisition With All-Cash Transaction

After Netflix announced earlier this month that it was acquiring Warner Bros. Discovery for $82.7 billion, the streaming service is now amending its acquisition offering with an all-cash transaction. The new agreement follows multiple hostile takeover bids from Paramount, which has been trying to acquire all of Warner Bros with an all-cash $108 billion offer.

In its initial acquisition proposition, Netflix offered a mix of cash ($23.25) and stock ($4.50) for a total of $27.75 per share. With the new deal, Netflix will still offer $27.75 per WBD share, but the company hopes that the all-cash transaction will provide “greater certainty of value for WBD stockholders, and accelerates the path to a WBD stockholder vote.”

The streaming service plans to finance the new all-cash deal through “a combination of cash on hand, available credit facilities and committed financing.” Netflix hopes that the amended deal, which has been unanimously greenlit by the Boards of Directors of both Netflix and WBD, will be approved by WBD stockholders by April 2026.

“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.”