Highlights
- Netflix is considering converting its $82.7B Warner Bros. Discovery bid into an all-cash offer to simplify approval.
- Paramount Skydance’s $108.4B all-cash bid continues to challenge the Netflix–WBD merger.
- The WBD acquisition faces legal and antitrust scrutiny, even as Netflix and WBD stock prices rise.
Netflix Inc. is reportedly preparing to revise its $82.7 billion USD offer to acquire Warner Bros. Discovery’s (WBD) studios and streaming businesses by converting it into an all-cash offer. According to Reuters, people familiar with the matter informed the publication about Netflix’s decision on Jan 13, 2026, shortly after Paramount sued WBD over the Netflix deal.
The original offer, announced in December 2025, combined cash and Netflix stocks for purchasing assets including Warner Bros. Pictures, HBO, and HBO Max. Under the reported revised terms, Netflix would eliminate the stock component and pay entirely in cash, simplifying the offer structure for investors.
Netflix’s revised bid would come amidst an aggressive rivalry with Paramount Skydance, which has repeatedly proposed a $108.4B all-cash bid for the entirety of Warner Bros. Discovery, including its cable networks and television assets. After WBD finalized the Netflix merger on Dec 4, 2026, Paramount has repeatedly tried to prove that its all-cash $30-per-share offer is superior to Netflix’s proposition.
The initial agreement valued WBD's studio and streaming assets at $27.75 per share, or an enterprise value of $82.7B, out of which $4.50 would have been paid in Netflix stock for per WBD share. Netflix’s reported stance, if materialized, would follow Paramount’s all-cash structure and would have the potential to close earlier.
Netflix’s All-Cash WBD Bid Strategic Stakes
At the time of writing, neither Netflix nor WBD has officially revealed any details about any revised offer structure from Netflix. The bidding war between Paramount and Netflix for the WBD assets has been going on for the past few months and attracted the attention of politicians, labor unions, and the U.S. antitrust division.
On Jan 7, the WBD board unanimously rejected Paramount’s revised bid, stating that, even after many chances, Paramount failed to revise its offer in a manner that would be beneficial for Warner and WBD shareholders.
Shareholders' views are also divided about the Netflix-WBD merger. Prominent WBD shareholders such as Thomas Poehling and Yussef Gheriani have previously shown inclination towards Paramount’s offer, and WBD’s seventh-largest shareholder, Pentwater Capital Management, threatened to vote against the Netflix merger if the WBD board doesn’t re-negotiate with Paramount if it further revises its offer.
While Netflix’s revised all-cash proposal has yet to be confirmed publicly by the company, market responses showed moderate stock gains for both Netflix and Warner Bros. Discovery following reports of the potential shift. Netflix shares were up 1.02% at the closing on Tuesday, while Warner Bros closed 1.62% higher. Paramount shares remained unchanged.
The market reaction suggests investor interest in Netflix’s potential all-cash offer for Warner Bros. Discovery’s studios and streaming businesses. However, the potential Netflix-WBD merger still remains in limbo, with Paramount’s repeated stance to halt or overthrow the potential Netflix-WBD merger, along with the significant unease in the entertainment industry across global markets about the merger.
