Netflix converts Warner Bros acquisition to all-cash deal amid Paramount bid
Netflix has officially converted its proposition to acquire Warner Bros and HBO Max into an all-cash deal, in an effort to kill competition from Paramount.
The two production companies announced on January 20th that they had updated the terms of their original proposed deal to now make it a transaction purely of cash, with share prices now standing at $27.75 individually.
The value of the deal continues to stand at a whopping $82.7 billion, but the move to all-cash, compared to the 84 per cent cash deal that was announced in December, is an attempt to thwart competitors also seeking to acquire the company.
It comes after Paramount Skydance launched a hostile bid, also all-cash, after the Netflix and Warner Bros deal was confirmed in December.
However, Netflix and Warner Bros have said that their new agreement “simplifies the transaction structure, provides greater certainty of value for WBD stockholders, and accelerates the path to a WBD stockholder vote,” according to Variety.
To this end, the two companies also announced that shareholders would be able to vote on the proposals by April 2026, although specific timelines and dates have not been revealed publicly at this stage.
Netflix and Warner Bros jointly insisted that their proposed timeline of the acquisition being completed within 12 to 18 months of their original deal from December 2025 will be met, despite the hurdles they have faced.
One of the biggest pushbacks came from US President Donald Trump, who said Netflix’s acquisition of the company “could be a problem” due to its market share. Notably, Trump has strong links to Paramount Skydance, with Ellison’s father, Larry Ellison, being one of his biggest financial supporters.
David Zaslav, president and CEO of Warner Bros Discovery, said: “Today’s revised merger agreement brings us even closer to combining two of the greatest storytelling companies in the world and with it even more people enjoying the entertainment they love to watch the most.”
Netflix’s co-CEO, Ted Sarandos, also emphasised that the renegotiation of the deal would “enable an expedited timeline to a stockholder vote and provide greater financial certainty”.
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