Netflix Goes All-Cash to Lock Down WBD Deal

In a move to accelerate its takeover and fend off rival bidders, Netflix is switching its offer for Warner Bros. Discovery's studio and streaming assets to an all-cash transaction. The amended agreement keeps the deal valued at $27.75 per share but removes the stock component, giving WBD shareholders a firm cash price.

• Building a wall: The pivot is a direct counter to competing interest from Paramount and Skydance, effectively cementing Netflix and WBD's exclusive arrangement. The companies stated the new structure "enhances execution certainty" and could put the proposal before stockholders as early as April 2026.

• Splitting the assets: The deal requires WBD to first spin off its linear networks—including CNN and the Discovery Channel—into a new standalone public company called "Discovery Global." Shareholders will receive stock in this new company, plus Netflix's cash payment for the remaining assets, including Warner Bros. Pictures, HBO, and DC Studios.

• Wrapped in red tape: While both boards have given their blessing, the deal still faces major regulatory hurdles. Netflix and WBD are now making their case to regulators at the Department of Justice and the European Commission, with the amended merger agreement now filed and the transaction expected to close in 12-18 months.

Netflix is betting a straightforward cash offer can clear the path for a massive industry consolidation, but the real test will be navigating the complex and lengthy regulatory review in the U.S. and Europe.