Netflix Set to Make All-Cash Offer for Warner Bros, Sources Say
On January 13, 2026, news broke that Netflix is planning to change its offer for Warner Bros. Discovery to an all-cash bid. This is a major shift from its earlier plan that mixed cash and Netflix stock. The idea is to make the deal cleaner and faster for Warner Bros. shareholders to accept.
The change comes as Paramount Skydance pushes its own all-cash bid worth over $108 billion, creating a tough battle for one of Hollywood’s biggest media companies. Warner Bros. owns huge franchises like Harry Potter, Game of Thrones, and the DC universe assets that could reshape the global streaming landscape.
If Netflix moves ahead, this could be one of the most-watched media deals in years.
Background: Netflix Original Deal Structure
In December 2025, Netflix agreed to buy much of Warner Bros. Discovery in a deal worth about $82.7 billion. Under that original agreement, Warner Bros. shareholders would get $23.25 per share in cash plus Netflix stock valued at about $4.50. The total was set at $27.75 per share.
The plan was for Netflix to take over the film studios, HBO, HBO Max, and other key assets. Meanwhile, Warner’s cable channels and networks were to be spun out into a new public company, Discovery Global, before the merger closed.
That mix of cash and stock was meant to balance value with flexibility. But Netflix’s share price has dropped since the deal was first announced. That slump has made the stock portion less appealing and triggered terms allowing Netflix to rethink its offer.
Netflix and Warner Bros: What the All-Cash Offer Would Change?
Now, Netflix is reported to be preparing an all-cash version of the bid for Warner’s studios and streaming business. This means every share would be bought with cash rather than some cash plus stock.
An all-cash deal is simpler. Shareholders won’t have to worry about future stock price swings. They would get a straight payout that might feel safer to many investors. And it could make Netflix’s bid cleaner and more attractive.
The change is driven by several pressures. Netflix’s stock has slid since October, and the original deal included stock that now holds less value. A pure cash bid could help calm investor doubts and strengthen Netflix’s hand in the fight to win Warner’s assets.
After news of the revised cash offer broke, Netflix’s stock rose about 1% and Warner Bros. shares climbed about 1.6%, suggesting markets see the shift as a positive move.
Paramount Skydance’s Rival Bid
Netflix is not alone in this race. Paramount Skydance launched a hostile all-cash takeover bid valued at roughly $108.4 billion. This offer would buy all of Warner Bros. Discovery, including its cable TV assets. Paramount’s bid offers $30 per share in cash, a premium over Netflix’s $27.75 offer, and includes financial backing from major investors.
Paramount has taken a bold approach. It has sued Warner Bros. Discovery in court, arguing that the board must disclose full details about the Netflix deal so shareholders can judge which offer is truly better. It has also launched a proxy fight to replace board members and push its takeover through.
Warner’s board has repeatedly rejected Paramount’s overtures, calling the Netflix agreement superior overall. It insists Paramount’s heavy reliance on debt financing adds risk, and it still recommends shareholders stick with the Netflix plan.
Market & Regulatory Implications
This bidding battle has not only raised corporate drama, but also market and regulatory questions.
The U.S. Department of Justice and European regulators will likely scrutinize whichever deal moves forward. Combining the biggest streamer with Warner’s vast content library could change how media giants compete in the streaming era.
Investors have shown mixed reactions. While the stock upticks after the all-cash news were positive, analysts warn the merger may still face obstacles. Longer reviews and possible competition challenges are likely, especially as one bidder seeks to absorb many of the same assets as another.
Strategic Importance for Netflix
For Netflix, this shift shows how far the company is willing to go to secure key content. Warner Bros. owns some of the most powerful entertainment brands in the world, from blockbuster movie franchises to hit TV series.
Bringing these assets under one roof would expand Netflix’s library dramatically. It could boost subscriber value and offer leverage against rivals like Disney+, Amazon Prime Video, and Paramount+ itself.
An all-cash proposal could also signal Netflix’s confidence in its long-term strategy. It removes uncertainty about stock valuation. And it may make the offer easier for shareholders to accept.
Closing Note: Netflix Deal Timeline & What Comes Next
Even with revised terms, the deal is far from done. Regulators in the U.S. and Europe will likely review this merger for months. Analysts expect the full process to take 12-18 months from the date of the original agreement, meaning the deal could extend deep into 2026 or beyond.
Meanwhile, shareholder decisions will be influenced by how these revised bids stack up against each other, cash value, certainty of closing, and overall risk. Paramount’s aggressive push and Netflix’s recalibrated offer make the outcome hard to predict.
One thing is clear: whichever path wins, this battle for Warner Bros. Discovery will shape the future of streaming and media consolidation for years to come.
Frequently Asked Questions (FAQs)
Yes. Netflix agreed to buy Warner Bros. Discovery’s studios and streaming units in December 2025, and on January 13, 2026, it moved toward a full cash deal.
Netflix is switching to cash because its stock fell, and cash feels safer for sellers. On January 13, 2026, this change also helped compete with Paramount’s bid.
The deal is not closed yet. If approved by regulators and investors, it may finish in late 2026 after reviews in the United States and Europe are done.
Disclaimer
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
