Netflix is putting the pedal to the metal in its acquisition of Warner Bros Discovery, shifting to an all-cash offer to finalize the $83 billion transaction. The primary goal is speed: Netflix wants to integrate WBD’s studio and streaming operations quickly to fend off a persistent hostile takeover attempt by Paramount Skydance.
Paramount’s bid, which values WBD at $108.4 billion, is significantly higher than Netflix’s but comes with strings attached—namely, a heavy reliance on debt financing. WBD’s board has already rejected this offer, but Paramount is refusing to concede, planning to nominate a slate of new directors to the WBD board to push their deal through.
To counter this, Netflix is streamlining its proposal. The original agreement from December involved a complex mix of compensation, including stock in Netflix and equity in a spin-off of WBD’s linear networks. The new all-cash plan for the studio and streaming assets simplifies the math for shareholders and regulators alike, potentially shaving months off the closing timeline.
The deal would see Netflix acquire massive franchises like the DC Universe and Harry Potter, as well as HBO’s prestige lineup. However, this consolidation has sparked a backlash from industry figures and politicians who fear a monopoly. Critics argue that a single company controlling 50% of the streaming market is bad for consumers and creators.
Despite these concerns, the stock market reacted favorably to the news. WBD shares rose 1.6% and Netflix shares gained 1%, reflecting optimism that the all-cash structure will get the deal done. For Netflix, the acquisition is a strategic imperative to maintain its lead in the increasingly competitive streaming landscape.