Netflix has revised its $82.7bn (£61.5bn) bid for Warner Bros Discovery (WBD), switching to an all-cash offer in a move designed to speed up approval and fend off a hostile takeover attempt from Paramount Skydance.
The revised proposal keeps the same valuation of $27.75 per share but removes the shares component, which Netflix and WBD say gives greater certainty to investors and could allow a shareholder vote as early as April. The WBD board has again unanimously backed the Netflix deal.
Under the agreement, Netflix would acquire Warner Bros studios and HBO, while WBD’s global networks arm – including CNN, Discovery Channel and Cartoon Network – would be spun off as a separate company, with shares distributed to existing WBD investors.
Paramount Skydance is continuing to pursue a rival $108.4bn cash bid for all of WBD and has taken the offer hostile. It has sought to challenge the Netflix deal through a lawsuit and a planned proxy fight, though a Delaware judge has already rejected its legal challenge.
If WBD were to abandon the Netflix agreement, it would face a $2.8bn breakup fee, along with billions more in related costs. Paramount has increased its own termination fee to match Netflix’s, but WBD’s board has twice urged shareholders to reject Paramount’s proposal, citing financial and structural risks.
The battle comes as Netflix reported strong subscriber growth, topping 325 million users worldwide, though its shares dipped after it forecast 2026 revenues slightly below market expectations.
