Netflix Shifts to All-Cash Bid for Warner Bros.

The original agreement, announced in late 2025, involved a complex mix of cash and stock. Under the initial terms, Warner Bros. shareholders were slated to receive $23.25 in cash and $4.50 in Netflix stock for every share they owned.

The revised agreement eliminates the equity component entirely. Now, the transaction will be funded 100% with cash, maintaining the total per-share value at $27.75. This all-cash structure is often viewed favorably by shareholders as it removes the volatility and uncertainty associated with stock-based compensation.

The assets included in this monumental deal encompass some of the most recognizable names in entertainment:

• HBO Max - the premium streaming service
• Warner Bros. Studios - the historic film and television production arm
• DC Entertainment - the comic book and media franchise division
• Discovery Network - the portfolio of factual and lifestyle channels

This strategic pivot is not occurring in a vacuum. Paramount has been aggressively pursuing a hostile takeover of Warner Bros. Discovery, creating a competitive and complex bidding war. A hostile bid occurs when a company attempts to acquire a target directly from its shareholders, bypassing the target's board of directors.

By sweetening the deal with an all-cash offer, Netflix is directly addressing shareholder concerns and making its proposal more attractive compared to Paramount's bid. The certainty of immediate cash versus the potential of stock in a rival company can be a decisive factor for investors.

The all-cash offer is a powerful signal of financial commitment and a direct challenge to competing bids.

This maneuver places immense pressure on the Warner Bros. board and shareholders to favor the Netflix deal, as it provides a clear, immediate, and premium exit strategy.

The timeline for this high-stakes acquisition is now on a fast track. Warner Bros. Discovery is targeting an April 2026 shareholder vote to approve the merger. This accelerated schedule is likely a response to the competitive pressure from Paramount, aiming to close the deal before the rival bid can gain further traction.

For the acquisition to proceed, it must receive approval from a majority of Warner Bros. Discovery shareholders. The all-cash structure is expected to appeal to a broad base of investors who prefer the liquidity and stability of cash over the potential future performance of Netflix stock.

Key milestones in the coming months will include:

1. Formal submission of the revised merger agreement to regulators
2. Proxy statement distribution to all shareholders
3. Antitrust and regulatory review period
4. The scheduled shareholder vote in April 2026

Should the deal succeed, the merger would create an unprecedented entertainment behemoth. Combining Netflix's global streaming dominance and technological prowess with Warner Bros.' vast library of intellectual property and production capabilities would reshape the media landscape.

The combined entity would control a staggering portfolio of content, from blockbuster films like The Dark Knight and Harry Potter to prestige television series on HBO. This vertical integration of content creation and distribution could provide a significant competitive advantage in the streaming wars.

The acquisition would also eliminate a major competitor in the streaming space, consolidating the market further. This potential reduction in competition is likely to be a key focus for regulatory bodies reviewing the transaction.

The race to acquire Warner Bros. Discovery has entered its most critical phase. Netflix's all-cash counter-offer has set the stage for a decisive shareholder vote in the spring of 2026. The outcome will hinge on whether shareholders value the certainty of cash or remain open to alternative bids.

The coming months will be filled with intense negotiations, regulatory scrutiny, and shareholder advocacy. The final decision will not only determine the future of Warner Bros. but also signal the direction of the entire entertainment industry as it continues its rapid transformation.

Key Takeaway: The battle for Warner Bros. is now a direct contest between Netflix's all-cash certainty and Paramount's hostile ambition, with shareholders holding the ultimate power to decide the fate of a media empire.