Netflix Ups Warner Bros Bid With All-Cash Offer
Netflix switches to an all-cash $72B offer for Warner Bros, intensifying the battle with Paramount as shareholders weigh this high-stakes acquisition.
Netflix has updated its offer for Warner Bros. Discovery's streaming and film businesses and will now pay entirely in cash – as it seeks to fend off rival Paramount SkyDance in the race to acquire the Hollywood studio.
The move represents a shift from the streaming giant's original offer, which was to finance the transaction with a mix of cash and shares.
In a joint announcement, Netflix and Warner Bros. said the change would provide shareholders with greater "certainty" and allow them to vote on and approve the deal more quickly.
The update comes as Paramount SkyDance continues to pursue its rival bid to acquire Warner Bros, despite repeated rejections.
Netflix's plan would give the streaming giant ownership of Warner Bros.'s rich library, including franchises such as Harry Potter and Game of Thrones, as well as the HBO Max streaming service.
It has offered to pay $27.75 per share, or approximately $72 billion (£54 billion), for the streaming and film businesses, a price that remains unchanged.
Including debt, the transaction values the enterprise at approximately $82 billion (£61 billion).
Warner Bros. shareholders would also receive shares in other parts of Warner Bros., which are to be spun off into a separate, publicly traded company.
Paramount, which is backed by tech billionaire Larry Ellison and his family, has argued that the value of those networks is significantly less than Warner Bros. anticipates, meaning its offer of $30 per share, or a total of $108 billion (£80 billion), is superior for the company.
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It has continued its campaign to acquire the firm, recently filing a lawsuit against Warner Bros. to force the company to release the financial details of the Netflix offer. Warner Bros.'s leadership is currently sticking with Netflix, raising questions about how Paramount is financing its competing bid.
Samuel Di Piazza Jr., chairman of the Warner Bros. Discovery board of directors, said, "Our revised agreement with Netflix is a testament to the board's unwavering focus on representing and advancing the interests of our shareholders."
He said switching to an all-cash offer means the board can "deliver the incredible value of our combination with Netflix with even greater certainty," while allowing Warner Bros. shareholders to benefit from the spin-off of its other brands.
Critics have slammed both merger proposals, saying they would concentrate too much power in the hands of one company. Netflix shares have also fallen by more than 10% since the deal was announced last month, signaling investor concerns about the plan.
The shares continued to fall in after-hours trading on Tuesday, despite the company reporting strong performance in the final three months of 2025.
Netflix said revenue in the quarter rose 18% from a year earlier to more than $12 billion (£9 billion), including more than $1.5 billion (£1.1 billion) from advertising. Profit rose by nearly 30% to $2.4 billion (£1.8 billion).
The company said it now has more than 325 million paid subscribers worldwide, up more than 7% from a year earlier.
In a letter to shareholders, the company defended the deal, saying the Netflix and Warner Bros businesses are "complementary." It said the acquisition would enhance its film and television library and allow it to offer a more personalized streaming service.
The company also emphasized its plans to invest in production in the US. The company said, "Together, we will be able to provide more opportunities for creators and strengthen the entire entertainment industry."
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