Netflix is considering modifying the terms of its agreement to acquire the assets of Warner Bros. Discovery—including the studio, films, and streaming division—in order to make an all-cash offer, according to sources cited by various financial media such as Bloomberg or Barron’s.
Originally, the proposal combined cash, Netflix shares, and a stake in a Discovery unit valued at approximately $82.7 billion. This change would aim to make it more competitive against the rival Paramount Skydance offer, which proposes paying $30 per share entirely in cash.
The possibility of reformulating the offer has already had an effect on the markets: Netflix shares rose after reports suggesting this change, while Warner Bros. Discovery shares also reacted positively to the news. There are no official comments yet from Netflix or Warner Bros. on a modified offer, nor is it known when a final version of the proposal might be presented.
This possible strategic shift comes amid fierce competition among entertainment giants. Paramount Skydance launched a hostile cash tender offer that economically surpasses Netflix's initial proposal, adding pressure for Netflix to adjust its terms.
Beyond the financial dimension, this litigation reflects a larger struggle for the creative and content control of one of Hollywood's most important catalogs, which includes franchises of great cultural and industrial value.