Netflix Escalates Warner Bros Pursuit with $72 Billion All-Cash Offer
In a significant escalation of the high-stakes media industry takeover battle, Netflix has revised its acquisition proposal for Warner Bros. Discovery's studio and streaming assets to an all-cash transaction valued at $72 billion. This strategic move aims to strengthen its position against competing interest from Paramount-Skydance, which has launched its own aggressive bid for the Hollywood entertainment giant.
Revised Deal Structure Accelerates Timeline
The streaming giant initially struck a cash and stock agreement with Warner in December 2025, valuing the transaction at $27.75 per share with a total enterprise value reaching $82.7 billion including debt obligations. However, both companies announced on Tuesday 20 January 2026 that they would be restructuring the arrangement to provide greater certainty for Warner stockholders and expedite the path toward a shareholder decision.
The revised all-cash proposal maintains the $27.75 per share valuation while eliminating stock components from the original agreement. Warner shareholders will additionally receive shares in Discovery Global, which would operate as a separate publicly-traded entity following its previously-announced separation from Warner Bros. Discovery's core operations.
Warner leadership has consistently supported the merger with Netflix, with both companies' boards formally approving the updated all-cash arrangement announced this week. Warner CEO David Zaslav emphasised in an official statement that the revised agreement "brings us even closer to combining two of the greatest storytelling companies in the world."
Paramount's Hostile Bid Complicates Landscape
Meanwhile, Paramount-Skydance presents a formidable competing offer with distinct strategic differences. Unlike Netflix's targeted approach focusing on Warner's studio and streaming divisions, Paramount seeks to acquire the entire Warner Bros. Discovery corporation—including broadcast networks such as CNN and Discovery channels—through an all-cash proposal valued at $77.9 billion announced last month.
Warner stockholders face a critical deadline of 5 p.m. Eastern Time on Wednesday to tender their shares in support of Paramount's bid, which carries an enterprise value of $108 billion when including debt. Industry observers anticipate this deadline may be extended further, with the Wall Street Journal reporting last week that Paramount was preparing additional extensions to its tender offer.
Beyond the immediate tender process, Paramount has committed to a proxy contest, announcing last week its intention to nominate an alternative slate of directors before Warner's next shareholder meeting. The company has also pursued legal action in Delaware's Chancery Court, seeking to compel Warner Bros. to disclose detailed valuation assessments of both competing offers to shareholders.
A judge denied Paramount's request to expedite these proceedings last Thursday, prompting Warner to applaud the court's decision while characterising Paramount's lawsuit as "yet another unserious attempt to distract." Paramount maintained that the ruling didn't address the merits of its allegations, suggesting Warner shareholders "should ask why their Board is working so hard to hide this information."
Regulatory and Political Considerations Loom
Regardless of which suitor ultimately prevails, industry analysts anticipate a protracted acquisition process almost certain to attract intense antitrust scrutiny from regulatory authorities. Both Netflix and Warner have indicated they expect to complete their merger within 12 to 18 months from December's initial agreement, though Paramount's hostile bid could substantially complicate this timeline.
Political dimensions further complicate the landscape, with President Donald Trump's administration potentially influencing regulatory outcomes through unprecedented suggestions of personal involvement in deal approval processes. Media and entertainment trade organisations have expressed significant concerns about both proposed acquisitions, warning that further industry consolidation could result in substantial job losses and reduced content diversity, with particularly detrimental consequences for creative filmmaking.
Netflix co-CEO Ted Sarandos addressed these concerns directly on Tuesday, asserting that combining with Warner "will deliver broader choice and greater value to audiences worldwide" across both streaming platforms and theatrical releases while simultaneously "driving job creation and long-term industry growth."
Financial markets responded cautiously to the developments, with Netflix shares edging upward by just under 1% during Tuesday morning trading while Warner Bros. Discovery and Paramount-Skydance stocks experienced slight declines. The outcome of this corporate contest will likely reshape the global media landscape for years to come, determining control over some of entertainment's most valuable intellectual properties and distribution platforms.
