Netflix is sharpening its strategy in the increasingly messy fight over Warner Bros. Discovery, and this time the move is all about clarity and confidence rather than headline price hikes.
Netflix puts more cash on the table
In a revised proposal announced this week, Netflix said it will now offer cash directly to Warner Bros. Discovery shareholders, modifying the cash-and-stock deal it had already agreed upon with WBD’s board. The valuation itself has not changed. Netflix is still offering $27.75 per share for WBD’s studio and streaming assets, a deal that values the company at $82.7 billion.
What has changed is how that value is delivered. By leaning more heavily on cash, Netflix says the updated structure simplifies the transaction, provides greater certainty to shareholders, and speeds up the timeline for a vote. Netflix plans to finance the deal using a mix of cash, debt, and committed financing.
Why this tweak matters now
This revision is not happening in a vacuum. Paramount Skydance has been aggressively courting WBD shareholders with an all-cash offer of $30 per share for the entire company. To sweeten its pitch, Paramount secured a $40 billion financial backstop from CEO David Ellison’s father, Oracle co-founder Larry Ellison. That kind of guarantee is meant to send a very loud message: the money is there.
Paramount has also taken the fight to court, suing Warner Bros. Discovery for more information on Netflix’s offer and threatening to reshape WBD’s board after its bid was rejected. While a judge declined to fast-track the lawsuit, the legal pressure adds another layer of urgency to Netflix’s revised offer.
WBD’s board is still firmly in Netflix’s corner
Despite the higher per-share number from Paramount, Warner Bros. Discovery’s board has remained aligned with Netflix. WBD has repeatedly argued that Netflix’s bid carries less financial risk, largely because of Netflix’s balance sheet and ability to fund the acquisition without piling on extreme levels of debt.
Related: Netflix Says Warner Bros. Movies Will Keep 45-Day Theatrical Release Window
Warner Bros. has been especially critical of Paramount’s proposal, warning that it would load the combined company with roughly $87 billion in debt. The company has also questioned Paramount’s long-term stability, pointing to its junk credit rating and negative free cash flow, both of which could worsen under the weight of a massive acquisition.
The bigger picture
Netflix’s revised cash offer is not about winning a bidding war dollar-for-dollar. It is about removing friction. Same price, cleaner structure, faster decision. In takeover battles like this, certainty often carries as much weight as a higher headline number.
With Paramount pushing harder and the dispute now spilling into the courts, Netflix is signaling that it is not backing down. Whether shareholders prioritize immediate cash or long-term stability will ultimately decide the outcome, but for now, Netflix has made its pitch a lot easier to understand, and harder to dismiss.
