TLDR
- Netflix shifted to an all-cash $82.7B bid for Warner Bros Discovery.
- Warner’s board unanimously supports Netflix’s $27.75 per share offer.
- The move aims to speed approval and counter Paramount’s hostile bid.
- Regulators and trade groups warn of antitrust and industry risks.
- Investors focus on earnings and deal financing clarity.
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Netflix, Inc. (NasdaqGS: NFLX) traded at $88.18 during market hours, up 0.20%, as investors digested news of a major shift in its proposed acquisition of Warner Bros Discovery.
Netflix, Inc., NFLX
The streaming leader has moved to an all-cash offer valued at $82.7 billion, replacing its earlier cash-and-stock proposal in a bid to secure shareholder approval and fend off a rival challenge from Paramount-Skydance.
The revised deal values Warner Bros shares at $27.75 each and is backed unanimously by Warner’s board. Netflix said the all-cash structure offers greater financial certainty and accelerates the path to a shareholder vote, expected as early as April.
BREAKING: $NFLX Netflix upgrades Warner Bros ( $WBD) $83B bid to all-cash.
Netflix just announced that it was amending its $83 billion takeover deal for Warner Bros. to an all-cash deal, thus removing $4.50 in Netflix stock that had been a part of its initial winning offer.… pic.twitter.com/nvi7GEvYSe
— TacticzHazel (@TacticzH) January 20, 2026
Why Netflix Changed Course
Netflix altered the structure after its own shares fell nearly 15% following the original deal announcement in December. By removing equity from the transaction, Netflix aims to reduce volatility concerns for Warner shareholders while stabilizing sentiment around its own stock.
The revised offer also helps Warner reduce Discovery Global’s debt by about $260 million. Warner shareholders will still receive shares of Discovery Global, which is set to become a separate public company following a previously announced corporate separation.
Warner CEO David Zaslav said the updated agreement brings the companies closer to combining “two of the greatest storytelling companies in the world,” reinforcing management’s preference for Netflix over competing bids.
Paramount’s Hostile Challenge
Paramount-Skydance continues to press Warner shareholders with an all-cash $30 per share offer, arguing its bid carries higher headline value. That proposal values the full company, including networks such as CNN and Discovery, at an enterprise value of roughly $108 billion including debt.
Warner’s board has pushed back, citing balance sheet strength and leverage. It argue