Netflix Crystalsizes its Bid with a Sweetener: All-Cash Offer to Block Paramount's Hostile Takeover of Warner Bros Discovery.
In a move aimed at securing its bid, Netflix has agreed to sweeten its $82.7 billion (£61.5 billion) offer for Warner Bros Discovery (WBD), sweetening it with an all-cash deal worth the same valuation as the original proposal. The streaming giant made this switch in order to streamline the transaction structure and provide greater certainty of value for WBD shareholders, according to a statement from Netflix co-chief executive Ted Sarandos.
Sarandos stated that the revised all-cash agreement will enable an expedited timeline to a stockholder vote, providing financial certainty at $27.75 per share in cash, plus the value from the planned separation of Discovery Global. This move is seen as a strategic accelerant by Netflix, which also sees itself acquiring the studios behind popular franchises like Harry Potter and Superman.
In contrast, Paramount Skydance has continued to pursue its own hostile takeover bid worth $108.4 billion for WBD, with plans to nominate directors to WBD's board to vote against approval of the Netflix deal. However, a judge recently rejected Paramount's lawsuit seeking financial information related to the agreement.
As negotiations between Netflix and WBD continue, analysts have noted that WBD's board has twice expressed its opposition to Paramount's bid, describing it as "inadequate" and citing structural risks. In the event of a successful takeover by Paramount, WBD would be required to pay a $2.8 billion breakup fee, as well as $4.7 billion in costs associated with failing to complete a debt exchange.
In a recent quarterly earnings release, Netflix announced that it had surpassed 325 million subscribers and projected annual revenue at between $50.7 billion and $51.7 billion for 2026, but saw its shares drop 6.5% during out-of-hours trading due to the low end of this forecast falling below analyst estimates.
In a move aimed at securing its bid, Netflix has agreed to sweeten its $82.7 billion (£61.5 billion) offer for Warner Bros Discovery (WBD), sweetening it with an all-cash deal worth the same valuation as the original proposal. The streaming giant made this switch in order to streamline the transaction structure and provide greater certainty of value for WBD shareholders, according to a statement from Netflix co-chief executive Ted Sarandos.
Sarandos stated that the revised all-cash agreement will enable an expedited timeline to a stockholder vote, providing financial certainty at $27.75 per share in cash, plus the value from the planned separation of Discovery Global. This move is seen as a strategic accelerant by Netflix, which also sees itself acquiring the studios behind popular franchises like Harry Potter and Superman.
In contrast, Paramount Skydance has continued to pursue its own hostile takeover bid worth $108.4 billion for WBD, with plans to nominate directors to WBD's board to vote against approval of the Netflix deal. However, a judge recently rejected Paramount's lawsuit seeking financial information related to the agreement.
As negotiations between Netflix and WBD continue, analysts have noted that WBD's board has twice expressed its opposition to Paramount's bid, describing it as "inadequate" and citing structural risks. In the event of a successful takeover by Paramount, WBD would be required to pay a $2.8 billion breakup fee, as well as $4.7 billion in costs associated with failing to complete a debt exchange.
In a recent quarterly earnings release, Netflix announced that it had surpassed 325 million subscribers and projected annual revenue at between $50.7 billion and $51.7 billion for 2026, but saw its shares drop 6.5% during out-of-hours trading due to the low end of this forecast falling below analyst estimates.
I'm not sure why Netflix is so desperate to get its hands on Warner Bros Discovery, it's a huge deal that could put them in an even more competitive market 
. I mean, they're basically offering all cash and promising a smooth transaction, sounds like a sweet deal for WBD shareholders 
. But at what cost? Are they giving up too much of their own value to make this acquisition happen? 
And what about the impact on their subscribers? Will they be able to handle an influx of new content from Discovery Global? 
like seriously who else is hyped about Netflix getting closer to buying Warner Bros Discovery?!? 
I mean can you even imagine having all those iconic studios under one roof?!? Harry Potter, Superman, DC... it's a fanboy's dream come true! 
and the fact that they're going in with an all-cash deal is genius 
let's keep our fingers crossed that Netflix comes out on top and we get to see some amazing new projects from these studios 
meanwhile, paramount skydance is still tryin' to block the deal with some lame lawsuit 
imagine all that awesome content goin' straight into our streaming playlists!
. With all these big players competing for studios and franchises, it's going to be tough for new entrants to make a dent 
. Maybe this is just the shakeout we need to see some real innovation 
.
. Bring on the drama, bring on the deals – one thing's constant: my love for great storytelling! 
! Paramount's bid might be big, but I think Netflix is the better choice for WBD shareholders... they're getting a sweet deal and security of value 
. It's all about the Benjamins, baby 
!
I'm just worried that WBD shareholders are getting taken advantage of either way 
. And can we talk about how Netflix's shares dropped after they announced those earnings? 
Like, what did they expect? 
.
. It's like they're saying, "Hey, we know you want this deal - let's make it happen already!" 
I think this whole thing is a great reminder that sometimes you gotta be willing to get your hands dirty 
- sometimes you gotta be flexible and adapt to make things click!
The whole thing's got me feelin' like a Disney+ vs HBO Max battle, but without the popcorn 
. I'm intrigued by the fact that they're using an expedited timeline for the shareholder vote, it's like they want to show the WBD board that this is a serious offer 
. Meanwhile, Paramount Skydance is trying to mess things up with their hostile takeover bid