Netflix (NFLX) Stock: Streamer Goes All In With Cash for Warner Bros. Discovery

TLDR

• Netflix revised its $83 billion Warner Bros. Discovery acquisition to an all-cash deal at $27.75 per share
• The all-cash structure aims to provide greater value certainty for Warner shareholders and speed up the approval vote
• Warner shareholders will also receive shares in Discovery Global after its planned spin-off
• The deal is backed by a $42.2 billion bridge financing facility
• Paramount’s competing hostile bid offers $30 per share in cash for all of Warner Discovery

Netflix is changing the terms of its massive Warner Bros. Discovery takeover. The streaming giant announced Tuesday it’s converting the $83 billion deal into an all-cash transaction.

Netflix, Inc., NFLX

The revised offer still values Warner’s streaming and studios assets at $27.75 per share. Warner’s cable operations will be spun out to investors as a separate company called Discovery Global.

Netflix and Warner Bros. Discovery said the all-cash structure provides more certainty for shareholders. The companies also expect the change to speed up the approval process.

Warner shareholders are now expected to vote on the deal by April 2026. That’s faster than the original timeline under the mixed payment structure.

The deal faces competition from Paramount Skydance’s hostile bid. Paramount is offering $30 per share in cash for all of Warner Discovery.

That’s $2.25 more per share than Netflix’s offer. But Paramount’s bid includes Warner’s cable assets that Netflix plans to spin off.

Netflix is financing the all-cash deal through a $42.2 billion bridge facility. The company will also use existing cash and credit lines to complete the transaction.

Shareholder Response and Market Reaction

Warner Bros. Discovery stock slipped 0.3% to $28.49 following the announcement. That’s slightly above Netflix’s $27.75 offer price.

Netflix shares climbed 0.9% to $88.76 on the news. Paramount stock fell 0.9% to $11.70.

The boards of both Netflix and Warner Bros. Discovery unanimously approved the revised terms. Warner shareholders still need to vote on the deal for it to proceed.

Regulatory Hurdles Remain

The transaction still needs regulatory approvals before closing. Netflix expects the deal to take 12 to 18 months from the original 2025 agreement date.

The acquisition would expand Netflix’s production capacity across global film and television. Warner’s studios and streaming assets would integrate into Netflix’s existing operations.

Warner shareholders will receive both cash and shares in the spun-off Discovery Global company. The separation of Discovery Global must be completed before the deal can close.

Netflix structured the all-cash deal to preserve its balance sheet while absorbing Warner’s streaming and studios business.

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