Switching to an all-cash deal, Netflix makes a high-stakes bet to take on Paramount

(San Francisco, Jan 21) U.S. streaming giant Netflix announced revised acquisition terms for Warner Bros Discovery, stating it will acquire the company’s film and television production business through an all-cash offer of US$27.75 per share, aimed at accelerating the divestment process.

Alongside the updated structure, Netflix also raised the headline deal value, with the total purchase price increased from US$72.0 billion (about RM292.0 billion) to US$82.7 billion (about RM335.5 billion).

Warner Bros Discovery is expected to convene a special shareholders’ meeting to vote on the transaction. Netflix said shareholders should be able to cast their votes before April.

In early December last year, Netflix had proposed a cash-and-stock offer for the same production assets, under which shareholders would receive US$23.25 in cash plus Netflix shares worth about US$4.50, totaling US$27.75 per share and valuing the deal at approximately US$72.0 billion.

However, a competing bidder later emerged—Paramount Skydance—offering an all-cash proposal of US$30 per share, or roughly US$108.0 billion (about RM438.0 billion), to acquire all of Warner Bros Discovery’s businesses.

Netflix’s revised terms—shifting to an all-cash structure and lifting the total price—are widely seen as a response to the rival bid.