In a bold maneuver to fend off a rival, Netflix is planning to convert its takeover offer for Warner Bros Discovery into an all-cash deal valued at $83 billion. The move is a direct response to aggressive pressure from Paramount Skydance, which is pursuing a hostile takeover of the media giant. Netflix’s goal is to speed up the regulatory and shareholder approval process to secure the assets before Paramount can intervene.
The battle for WBD has turned into one of the most dramatic corporate showdowns in recent history. Paramount, controlled by the Ellison family, has put forward a staggering $108.4 billion offer. However, WBD management has urged shareholders to reject this bid, citing concerns over the significant debt involved in the deal. Paramount is now attempting to nominate its own directors to the WBD board to force a vote against the Netflix agreement.
Under the revised Netflix plan, WBD shareholders would receive immediate liquidity rather than a complex mix of stock and equity. This applies specifically to the sale of WBD’s streaming and studio businesses. The remaining assets, including global networks like CNN and the Cartoon Network, are excluded from the Netflix deal and would remain as a separate entity for current shareholders.
The acquisition would reshape the media landscape, placing the world’s largest streaming service in charge of iconic franchises such as Harry Potter and The White Lotus. This massive concentration of media power has led to a backlash from entertainment figures and lawmakers, who argue that the resulting entity would have too much leverage over the streaming economy.
Despite the regulatory headwinds, the financial markets appear optimistic about Netflix’s ability to close the deal. Following reports of the switch to an all-cash offer, stock prices for both companies saw a modest uptick. The race is now on to see if Netflix’s liquidity can outweigh Paramount’s higher-value, debt-heavy proposition.