Netflix switches to all-cash $27.75 offer to neutralize Paramount’s $30 bid for Warner Bros Discovery
Netflix converted its $27.75-per-share cash-and-stock offer for Warner Bros Discovery into an all-cash deal to counter Paramount Skydance’s $30-per-share rival bid, preserving the $82.7bn valuation and speeding a shareholder vote by April.
Overview
Netflix amended its agreement with Warner Bros Discovery to an all-cash $27.75-per-share offer, keeping the total enterprise value around $82.7bn and gaining unanimous support from WBD's board.
The all-cash bid replaces the earlier $23.25 cash plus $4.50 in Netflix stock terms, aiming to remove market-based uncertainty and accelerate a shareholder vote expected by April.
Paramount Skydance mounted a hostile $30-per-share all-cash bid and has campaigned and pursued legal action to push for more disclosure and sway shareholders.
Warner Bros plans to spin off cable and TV assets into Discovery Global, whose valuation the board estimated between $1.33 and $6.86 per share, a key point in arguing Netflix’s offer is superior.
Analysts warn the winning bid could face significant antitrust scrutiny and that debt levels vary: Netflix's takeover would carry roughly $85bn in debt but lower leverage than Paramount’s proposal.
Analysis
Center-leaning sources frame the story as a business-focused tussle emphasizing deal certainty, shareholder value and board endorsement, using concise market metrics and executive lines to foreground Netflix’s strategic logic while critics and regulatory concerns are mentioned only briefly, making the narrative tilt toward transactional clarity and competitive drama.
Sources (15)
FAQ
Netflix amended its original cash-and-stock offer of $23.25 cash plus $4.50 in stock to an all-cash offer of $27.75 per share, maintaining the enterprise value around $82.7 billion.
Paramount Skydance launched a hostile all-cash bid of $30 per share, valued at approximately $108.4 billion in enterprise value, and has campaigned and pursued legal action to influence shareholders.
Warner Bros Discovery plans to spin off its cable and TV assets into a new entity called Discovery Global before the Netflix acquisition, with the spin-off expected by Q3 2026.
The winning bid may face significant antitrust scrutiny, with Netflix's deal carrying about $85 billion in debt but lower leverage than Paramount's; Warner Bros Discovery's board estimates Discovery Global's value at $1.33 to $6.86 per share to argue Netflix's superiority.
History
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