In a significant escalation of the high-stakes battle for Warner Bros Discovery’s entertainment assets, Netflix has revised its acquisition proposal to an all-cash transaction valued at approximately $72 billion. This strategic move eliminates the previously proposed stock component, intensifying the streaming giant’s competition against Paramount Skydance for control of the prestigious Hollywood studio.
The revised terms maintain the original $27.75 per share valuation for Warner Bros’ streaming and film divisions, which encompass the massively valuable HBO Max platform and legendary content libraries including the Harry Potter franchise and Game of Thrones universe. The total enterprise value, incorporating debt assumptions, reaches approximately $82 billion.
Concurrently, Warner Bros shareholders would receive equity in the company’s remaining assets—including news network CNN—which are scheduled to become an independent publicly traded entity through a spinoff process.
The amended agreement emerged as Paramount Skydance, backed by technology billionaire Larry Ellison and his family, continues its aggressive pursuit with a competing $108 billion overall valuation ($30 per share) offer. Paramount has maintained that Warner Bros’ non-entertainment assets are significantly overvalued, recently initiating legal action to force disclosure of financial details regarding Netflix’s proposal.
Warner Bros leadership has consistently expressed preference for Netflix’s offer, citing greater certainty regarding financing and transaction execution. Samuel Di Piazza, Jr., Chair of the Warner Bros Discovery Board of Directors, stated: “Our amended agreement with Netflix demonstrates the board’s unwavering commitment to advancing stockholder interests. Transitioning to an all-cash offer delivers the tremendous value of our combination with Netflix with enhanced certainty.”
Netflix executives positioned the acquisition as industry-positive, with co-CEO Ted Sarandos emphasizing: “This combination will provide broader choice and greater value to global audiences while expanding U.S. production capacity and driving substantial investment in original programming. This transaction represents growth and job creation for our industry’s future.”
Despite criticism from some industry observers concerned about excessive market consolidation, the proposed merger continues advancing toward shareholder consideration, potentially reshaping the global entertainment landscape.