Netflix has revised its $82.7bn (£61.5bn) offer for the studios and streaming businesses of Warner Bros Discovery (WBD), making it an all-cash deal to accelerate the acquisition process amid a hostile bid from Paramount Skydance. The streaming company said the change simplifies the transaction and allows WBD investors to vote as soon as April.
The revised offer, at the same valuation of $27.75 per share as the original cash-and-shares proposal, was unanimously recommended by the WBD board. Netflix co-chief executive Ted Sarandos said the all-cash agreement “provides greater financial certainty” and expedites the timeline for a stockholder vote. Under the deal, WBD investors will also receive shares in the spun-off global networks unit, which includes CNN, Cartoon Network and Discovery Channel.
Paramount Skydance continues to pursue a $108.4bn hostile takeover of the whole of WBD, which it has taken directly to shareholders. Last week, Paramount said it planned to nominate directors to WBD’s board to vote against the Netflix deal and filed a lawsuit seeking financial disclosures. On Thursday, a Delaware court rejected the lawsuit. Paramount will need to win a proxy fight at WBD’s annual meeting in June to derail the Netflix agreement.
WBD’s board has twice urged shareholders to reject Paramount’s offer, calling it the “largest LBO in history” and citing risks. The Netflix deal includes a $2.8bn breakup fee if WBD walks away, while Paramount’s revised offer increased its termination fee to $5.8bn. WBD said accepting the Paramount bid would incur $4.7bn in costs, including the Netflix breakup fee and debt charges.
Separately, Netflix announced it had surpassed 325 million subscribers in its latest quarterly results, boosted by shows such as Stranger Things. It projected annual revenue of between $50.7bn and $51.7bn for 2026, with the low end falling below analysts’ estimates of $51bn. Shares dropped 6.5% in after-hours trading.
