Netflix has proposed an all-cash deal to acquire Warner Bros.

Netflix Updates Acquisition Terms to Strengthen Position Against Competitors Netflix has revised the terms of its proposed acquisition of Warner Bros. Discovery (WBD), shifting to an all-cash deal to bolster its competitive edge amid ongoing bidding wars. This strategic change aims to make the offer more attractive and secure by reducing uncertainties associated with stock-based payments. Revised Deal Details and Valuation Under the new agreement, Netflix will pay WBD shareholders a fixed price of $27.75 per share entirely in cash. The overall deal remains valued at approximately $82.7 billion, similar to the original proposal. Previously, announced on December 5, the deal involved about 84% cash payment, with the remaining portion in Netflix stock—a structure that exposed the final payout to market fluctuations and the company's stock performance. Rationale Behind the Term Changes Netflix stated that the move to an all-cash offer was designed to "simplify the transaction structure, provide greater certainty of value for WBD shareholders, and speed up the approval process." By removing stock components, the deal reduces exposure to market volatility, offering shareholders a clear and definitive payout. Accelerating the Approval Timeline The updated terms also allow for a faster shareholder approval process, with a potential vote scheduled as early as April 2026. WBD has already filed necessary documentation with the U.S. Securities and Exchange Commission (SEC) to meet this new timeline, indicating a push to close the deal swiftly. Overall, Netflix's strategic revision aims to enhance the attractiveness and competitiveness of its bid, minimizing risks and positioning itself favorably against rival bidders like Paramount Skydance.