Netflix makes $82.7bn all-cash bid for Warner Bros
Netflix switches to an all-cash $82.7bn bid for Warner Bros Discovery assets, aiming to shut out Paramount as the board backs the deal
Netflix has rewritten the terms of its bid to acquire Warner Bros Discovery’s studio and streaming business, switching to an all-cash offer while keeping the headline value unchanged at $82.7 billion, in a move designed to shut out rival bidder Paramount Skydance, according to regulatory filings and a statement cited in reports.
The filings, submitted on Tuesday, show Netflix’s amended proposal is an all-cash offer of $27.75 per share and has received unanimous support from Warner Bros Discovery’s board. Netflix’s shift removes reliance on its own share price and is intended to provide greater certainty of value and a faster path to a shareholder vote.
Both Netflix and Paramount Skydance have been pursuing Warner Bros Discovery, drawn by the strength of its film and television studio operation, its streaming business, and an extensive content library that includes major franchises such as Game of Thrones, Harry Potter, and DC Comics superheroes including Batman and Superman.
Paramount has argued that its competing proposal is superior and has sought to persuade shareholders accordingly, but Warner Bros Discovery has resisted those efforts and reiterated its preference for the Netflix deal, citing factors such as price, risk, costs and broader uncertainty.
A key element of Warner Bros Discovery’s position is that, under the Netflix structure, shareholders would receive cash while also retaining additional upside from shares in a separated “Discovery Global” unit, which is to be spun off and listed separately.
Investor Alex Fitch, a portfolio manager at Harris Oakmark—described as Warner Bros Discovery’s fifth-largest shareholder, with a stake of about 96 million shares—said the takeover battle may not be over, but the amended terms increase pressure on Paramount to come back with something clearly better if it wants to win.
Market reaction was mixed. Netflix shares rose 0.9% ahead of the company’s quarterly earnings report due after the close, while Paramount Skydance slipped 1.9% and Warner Bros Discovery fell 0.5% in early trading.
Analysts also weighed in on the strategic shift. Ross Benes of Emarketer was cited as saying Paramount may try again to convince shareholders, but without raising the price, the argument risks being largely cosmetic. Matt Britzman of Hargreaves Lansdown was quoted as saying Netflix’s all-cash move was a smart way to remove uncertainty for Warner Bros Discovery shareholders—though it would not eliminate regulatory pressure.
