Netflix Set To Move Forward With Acquiring Warner Bros. Discovery In Revised All-Cash Offer – AfroTech
Netflix, Inc. has amended its acquisition agreement with Warner Bros. Discovery (WBD) to an all-cash offer at $27.75 per share, replacing the previously proposed cash and stock deal, the company announced in a press release on Tuesday, Jan. 20, 2026.
Financing for the transition will come from a combination of cash on hand, available credit facilities, and committed funding, notes the release.
“Today’s revised merger agreement brings us even closer to combining two of the greatest storytelling companies in the world and, with it, even more people enjoying the entertainment they love to watch the most,” WDB president and CEO David Zaslav said in the release.
Per the press release, Netflix said the all-cash structure provides “enhanced certainty” for WBD shareholders, easing concerns about fluctuations in Netflix’s stock price.
The company added in the release that the revised offer is expected to accelerate the transaction timeline, with a shareholder vote anticipated by April 2026.
If approved, the Netflix deal would proceed alongside WBD’s planned split, with Netflix acquiring WBD’s studios and HBO Max. Discovery Global would transition into a separate publicly traded company, as AFROTECH™ previously reported.
Netflix And Warner Bros. Discovery
Netflix announced on Dec. 5, 2025, that it had entered into a definitive agreement to acquire WBD, including its film and television studios, HBO Max, and HBO, per AFROTECH™.
The original cash-and-stock transaction valued WBD at $27.75 per share, representing a total enterprise value of approximately $82.7 billion, including an equity value of about $72 billion, we reported in December.
In a press release, Netflix said the acquisition would deliver greater choice and value to consumers and shareholders.
“This acquisition will improve our offering and accelerate our business for decades to come,” Netflix’s co-CEO Greg Peters mentioned in the release. “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry, and creating more value for shareholders.”
Paramount Skydance Challenges Netflix With Rival Bid
Shortly after Netflix’s December announcement, Paramount Skydance launched an all-cash bid valuing WBD at $30 per share, or about $108 billion, as AFROTECH™ previously told you.
WBD’s board urged shareholders to reject the offer days later, calling Netflix’s proposal “superior, and more certain,” in a statement to the Hollywood Reporter. However, Paramount said it has no plans to withdraw its bid and warned it would challenge the Netflix transaction if shareholders are asked to vote on it.
On Jan. 12, 2026, Paramount filed a lawsuit against WBD, seeking a Delaware court’s order compelling the company to disclose details of the sale process and the pending Netflix deal, per AFROTECH™.
According to The Guardian, if WBD accepts Paramount’s offer, it would have to pay a $2.8 billion breakup fee to Netflix for walking away from the agreement.
