Netflix Makes All-Cash Offer for Warner Bros Acquisition

Netflix has recently modified its acquisition proposal for Warner Bros Discovery. The streaming giant will now offer an all-cash deal to acquire Warner Bros’ streaming and film businesses. This strategic move aims to ensure a competitive edge against rival Paramount Skydance.

Details of the Cash Offer

The new offer consists of a payment of $27.75 per share, valuing the total deal at approximately $72 billion (£54 billion). This valuation remains unchanged from the previous mixed cash and stock offer. When including debts, the approximate total value of the enterprise is estimated at $82 billion (£61 billion).

Implications for Shareholders

• The all-cash offer is expected to provide greater certainty for Warner Bros shareholders.
• Shareholders will also receive shares in other parts of Warner Bros, such as CNN, which will be spun off as a separate publicly traded entity.
• This adjustment aims to facilitate a swifter shareholder vote on the deal.

Competitive Landscape

Paramount Skydance continues to pursue its own bid for Warner Bros, despite facing repeated rejections. Their proposal stands at $30 per share—which, when totaled, reaches $108 billion (£80 billion). Paramount’s bid is backed by tech billionaire Larry Ellison.

Legal and Financial Dynamics

Recently, Paramount filed a lawsuit against Warner Bros, seeking to uncover financial details regarding Netflix’s offer. Despite the legal dispute, Warner Bros has chosen to align with Netflix so far. Concerns have been raised regarding how Paramount will finance its acquisition.

Warner Bros’ Leadership Statement

Samuel Di Piazza Jr., chair of the Warner Bros Discovery board, emphasized the commitment to represent shareholders’ interests. He stated that the shift to an all-cash offer enhances the perceived value of the merger. This change aims to bolster shareholder confidence, while facilitating an advantageous spinoff of Warner Bros’ diverse brands.

Market Reactions and Netflix’s Performance

Since announcing the deal, Netflix’s stock has seen a decline of over 10%, reflecting investor concerns. Despite this, the company reported a strong financial performance for the last quarter of 2025. Revenue rose 18% year-over-year, exceeding $12 billion (£9 billion), with over $1.5 billion (£1.1 billion) generated from advertising. Profits increased nearly 30% to approximately $2.4 billion (£1.8 billion).

Subscriber Growth

Netflix now boasts over 325 million paying subscribers worldwide, marking a growth of more than 7% compared to last year. The company maintains that the acquisition of Warner Bros will enhance their film and television offerings, providing a more personalized streaming experience.

Future Plans

Netflix aims to invest in production within the United States as part of the acquisition strategy. By combining forces with Warner Bros, Netflix seeks to create more opportunities for creators and enrich the overall entertainment industry.