Los Angeles, January 21, 2026
Netflix has shifted its acquisition proposal for Warner Bros. Discovery from a cash-and-stock arrangement to an all-cash offer of $27.75 per share. This strategic move aims to expedite the merger process, as both companies look to harness potential benefits amid a competitive landscape, particularly against a substantial bid from Paramount Skydance. The decision reflects Netflix’s commitment to streamline transactions and reassure investors, even as its subscriber growth faces some concerns.
Los Angeles, CA – Netflix Offers All-Cash Deal for Warner Bros.
Strategic Shift Aimed at Securing Merger Amid Competition
Los Angeles, CA – Netflix has recently revised its acquisition proposal for Warner Bros. Discovery by transitioning from a cash-and-stock arrangement to an all-cash offer, valued at $27.75 per share. This tactical shift seeks to enhance certainty and expedite the merger process for Warner’s shareholders, with a decisive vote anticipated by April 2026.
By opting for an all-cash proposal, Netflix aims to simplify transaction elements and alleviate concerns regarding its volatile stock performance, making the deal more attractive to investors. Under the new terms, Warner’s shareholders would receive the proposed cash payment alongside the benefits from the upcoming spin-off of Discovery Global, which is set to become an independent entity. Both Netflix and Warner Bros. Discovery have publicly supported this amended agreement, citing potential advantages of merging two industry giants.
Bidding War and Competing Interests
This development arrives in the wake of a competitive landscape, where Paramount Skydance has launched an aggressive $77.9 billion all-cash bid for Warner Bros. Discovery, targeting its complete portfolio, including CNN and other valued assets. Paramount’s approach entails direct appeals to Warner’s shareholders, along with legal efforts to demand transparency regarding Warner’s valuation. Warner’s board, however, maintains its preference for the Netflix alignment, noting the strategic fit and prospective benefits for all stakeholders involved.
Subscriber Growth and Investor Concerns
Amidst these acquisition discussions, Netflix has reported an increase in its subscriber base, now exceeding 325 million paid members, up from 300 million noted in January 2025. This upward trend reflects Netflix’s expanding global influence and further possibilities for content enhancement through the proposed acquisition. However, there is some unease among investors regarding a noticeable slowdown in subscriber growth, which saw an addition of only 23 million new subscribers in 2025 compared to 41 million the previous year. Such concerns contributed to a nearly 5% decline in Netflix’s stock during extended trading, illustrating investor hesitancy about Netflix’s growth prospects and the implications of the acquisition.
Impacts on the Entertainment Landscape
As the bidding war escalates, both Netflix and Paramount Skydance are positioning themselves to seize control over the valuable Warner Bros. Discovery assets. The outcome of this competition is poised to significantly reshape the entertainment industry and could influence content creation, distribution strategies, and consumer preferences in a continually evolving digital market.
Conclusion
This revision in Netflix’s acquisition strategy marks a pivotal moment in the ongoing transition within the entertainment industry. The competition presented by Paramount Skydance not only heightens the stakes for Warner Bros. Discovery but also emphasizes the potential for innovation and growth within the market. As Los Angeles continues to be a key hub for these collaborative ventures, stakeholders are urged to stay informed and engaged with these vital developments that may shape the future of the local and national entertainment economy.
Frequently Asked Questions (FAQ)
What is the latest development in Netflix’s acquisition of Warner Bros. Discovery?
Netflix has amended its proposed acquisition of Warner Bros. Discovery’s studio and streaming assets, shifting from a cash-and-stock deal to an all-cash offer valued at $27.75 per share. This strategic move aims to expedite the merger process and provide greater value certainty to Warner’s shareholders, with a vote expected by April 2026.
Why did Netflix change its acquisition offer to an all-cash deal?
The revised all-cash offer simplifies the transaction structure, addressing concerns over Netflix’s fluctuating stock price and enhancing the appeal of the deal to Warner’s investors. Under the new terms, Warner’s shareholders will receive $27.75 per share in cash, plus the value from the planned separation of Discovery Global, a forthcoming independent company. Both Netflix and Warner Bros. Discovery have endorsed the amended agreement, emphasizing the potential benefits of uniting two major entertainment entities.
What is the competing bid from Paramount Skydance?
Paramount Skydance has launched a competing $77.9 billion all-cash hostile bid to acquire Warner Bros. Discovery in its entirety, including CNN and Discovery. Paramount has directly appealed to Warner’s shareholders and initiated legal challenges demanding disclosure of Warner’s valuation assessments, planning a proxy battle to influence the outcome. Despite these challenges, Warner’s board continues to support the Netflix deal, highlighting its strategic alignment and potential advantages for stakeholders.
How has Netflix’s subscriber growth been affected by the acquisition news?
In related developments, Netflix reported a significant increase in its subscriber base, now exceeding 325 million paid members, up from 300 million in January 2025. This growth underscores the company’s expanding global reach and the potential for enhanced content offerings through the proposed acquisition. However, investor concerns have emerged regarding a slowdown in subscriber growth, with only 23 million new subscribers added in 2025 compared to 41 million in 2024. This has led to a nearly 5% decline in Netflix’s stock during extended trading hours, reflecting market apprehension about the company’s growth trajectory and the implications of the acquisition.
What are the potential impacts of this acquisition on the entertainment industry?
As the bidding war intensifies, both Netflix and Paramount Skydance are positioning themselves to secure control over Warner Bros. Discovery’s valuable assets. The outcome of this competition will significantly impact the entertainment industry’s competitive landscape, influencing content creation, distribution strategies, and consumer choices in the evolving digital era.
Key Features of the Acquisition
| Feature | Details |
|---|---|
| Acquiring Company | Netflix |
| Target Company | Warner Bros. Discovery’s studio and streaming assets |
| Offer Type | All-cash |
| Offer Value | $27.75 per share |
| Shareholder Vote | Expected by April 2026 |
| Competing Bidder | Paramount Skydance |
| Paramount’s Offer Value | $77.9 billion |
| Paramount’s Offer Type | All-cash |
| Netflix’s Subscriber Base | Over 325 million paid members |
| Netflix’s Stock Performance | Nearly 5% decline in extended trading hours |
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