Netflix has revised its Warner Bros acquisition offer to an all-cash $82.7 billion deal, gaining unanimous board support. Paramount’s rival bid faces rejection. The new offer keeps Warner Bros shareholders’ value guaranteed while ending uncertainty over stock components.
Under the amended proposal, Netflix will pay $27.75 per share in cash for Warner Bros’ studios, HBO Max, and content library. Warner Bros said the cash-only deal provides immediate liquidity and certainty to shareholders, unlike the earlier mixed cash-and-stock bid. Paramount’s $30-per-share offer was rejected because it does not include Warner Bros’ planned Discovery Global spinoff.
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The Warner Bros board explained that Netflix’s offer is superior, leaving investors with a stake in the Discovery Global entity. Paramount had filed in court seeking disclosure of the cable business value but was denied, failing to show irreparable harm. Warner Bros emphasized that Paramount’s bid underestimates the risks, costs, and uncertainties involved.
Netflix shares rose 0.7% premarket following the announcement, while Paramount dropped 1% and Warner Bros was mostly unchanged. Netflix stock had previously fallen almost 15% since the merger announcement, a point used by Paramount to claim their offer was better. The deal would give Netflix a leverage ratio under four compared with Paramount’s higher debt exposure.
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Analysts say Netflix’s all-cash deal strengthens its bid against Paramount, combining an investment-grade rating with a market value of $402 billion. Warner Bros’ content and franchises, including “Game of Thrones,” DC superheroes, and Harry Potter, make it a highly valuable acquisition target. The deal marks a major shift in the media and streaming landscape.