Netflix has agreed to modify its pending acquisition proposal for Warner Bros. Discovery's (WBD) studios and streaming platform to be entirely in cash, a decision aimed at unlocking and expediting approval of the deal. The overall valuation remains around $82.7 billion, equivalent to $27.75 per WBD share, unchanged from the previous economic proposal, confirming rumors.
The new structure eliminates the mixed component —which combined cash and Netflix shares— and replaces it with a completely cash payment. According to the companies, this adjustment provides greater value certainty for WBD shareholders, simplifies the operation, and facilitates the voting schedule, which could be held in April 2026. The revised agreement has been approved unanimously by the boards of directors of both companies.
As already contemplated in the original agreement signed on December 5, the definitive closing of the acquisition will remain subject to several milestones: the prior separation of Discovery Global, the obtaining of regulatory approvals, the approval of WBD shareholders, and the fulfillment of the usual conditions in this type of transaction. Furthermore, the companies emphasize that Warner Bros. Discovery shareholders will also receive the additional value derived from the spin-off of Discovery Global.
Netflix has defended that its strong cash generation allows it to undertake an all-cash acquisition without compromising the strength of its balance sheet. The transaction will be financed through a combination of available liquidity, credit lines, and already committed financing, preserving room for future strategic priorities.
"The revised agreement brings us even closer to the merger of two of the world's most important storytelling companies," stated **David Zaslav**, President and CEO of Warner Bros. Discovery. Along the same lines, **Ted Sarandos**, Co-CEO of Netflix, highlighted that the proposal continues to have the unanimous support of the WBD board and will offer "the best possible outcome for shareholders, creators, and consumers," in addition to reinforcing investment in **original production and employment in the United States**.
The operation is not without tensions, due to the lawsuit filed by Paramount Skydance (PSKY) to force Warner Bros. Discovery to reveal the details of Netflix's offer, after the WBD board has repeatedly considered the platform's proposal superior and rejected, for the last time on December 22, a revised offer from PSKY. The latter valued WBD as a whole at more than $108.4 billion, although it was aimed at the entire group, unlike Netflix's proposal, which focused on the studios, HBO, and HBO Max.