Netflix Goes All-In with Cash to Secure Warner Bros Discovery

Netflix is reportedly shifting gears in its massive acquisition strategy, preparing a purely cash-based offer to finalize its purchase of Warner Bros Discovery’s (WBD) studio and streaming arms. The streaming giant aims to lock down the $83 billion deal quickly, effectively shutting out a competing, hostile bid from Paramount Skydance. By moving to an all-cash structure, Netflix hopes to make the proposal undeniable to WBD shareholders.
This strategic pivot is designed to accelerate a complex negotiation process that was originally expected to drag on for months. The revised terms update the initial agreement, which had offered $23.25 per share in a mix of cash, Netflix stock, and equity in a spin-off company. The new all-cash incentive is seen as a faster route to closing the deal and integrating WBD’s massive content library.
However, the road to acquisition is not without obstacles. Paramount Skydance, backed by the billionaire Ellison family, has launched a hostile $108.4 billion counter-bid. Despite the higher price tag, WBD’s board has previously rejected Paramount’s advances, labeling them “inadequate” due to heavy reliance on debt financing, even with a $40 billion personal guarantee from Oracle co-founder Larry Ellison.
The stakes are incredibly high, involving some of the entertainment industry’s most prized assets. If successful, Netflix would gain control over the legendary Warner Bros studio—home to Harry Potter, Batman, and Superman—as well as HBO’s prestige lineup, including Game of Thrones and Succession. Meanwhile, WBD’s linear networks like CNN and The Discovery Channel would be spun off separately, as they are not part of the purchase.
The proposed consolidation has sparked significant anxiety among US politicians and industry watchdogs. Critics fear that merging Netflix’s global reach with Warner’s intellectual property would create a monopoly controlling nearly half of the streaming market. Despite these concerns, the market reacted positively to the rumors, with WBD shares climbing 1.6% and Netflix rising 1%.