{"id":3133,"date":"2026-01-20T15:16:16","date_gmt":"2026-01-20T15:16:16","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=3133"},"modified":"2026-01-20T15:16:16","modified_gmt":"2026-01-20T15:16:16","slug":"netflix-revises-warner-bros-discovery-takeover-to-all-cash-deal-wbd-board-approves","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=3133","title":{"rendered":"Netflix revises Warner Bros Discovery takeover to all-cash deal, WBD board approves"},"content":{"rendered":"
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Netflix on Tuesday sweetened its bid for major parts of Warner Bros. Discovery, shifting to an all-cash offer<\/a> in a move that sharpens its battle with rival suitor Paramount and accelerates the path toward a shareholder vote.<\/p>\n

The Warner Bros. Discovery board has approved Netflix\u2019s revised proposal, which raises the cash component offered to shareholders while maintaining the overall deal value at about $72 billion.<\/p>\n

Terms of Netflix’s revised bid<\/h2>\n

Under the revised terms, Netflix will pay $27.75 per share in cash, replacing its earlier offer of $23.25 in cash and $4.50 in Netflix common stock per share.<\/p>\n

While the structure has changed, the headline value of the transaction remains roughly $72 billion.<\/p>\n

Netflix executives said the move was aimed at simplifying the deal and offering greater certainty to Warner shareholders.<\/p>\n

Netflix\u2019s modified offer would provide \u201cgreater financial certainty\u201d for shareholders, added Ted Sarandos, the co-chief executive of Netflix.<\/p>\n

Greg Peters, Netflix\u2019s other co-CEO, said the revised agreement demonstrates the streamer\u2019s commitment to the transaction and should help accelerate the process for Warner shareholders weighing competing offers.<\/p>\n

\u201cToday\u2019s revised merger agreement brings us even closer to combining two of the greatest storytelling companies in the world,\u201d David Zaslav, the chief executive of Warner Bros. Discovery, said in a statement.<\/p>\n

Warner Bros. Discovery disclosed the changes in a preliminary proxy statement filed with the Securities and Exchange Commission, which will now review the document.<\/p>\n

Warner said it expects the revised structure to allow shareholders to vote on the deal by April, a timeline that could prove critical as Paramount continues to apply pressure.<\/p>\n

The simplified cash-only offer may appeal to investors who had concerns about the volatility of Netflix\u2019s share price and the complexity of the earlier stock component.<\/p>\n

Paramount keeps up the pressure<\/h2>\n

Netflix\u2019s move comes as Paramount, led by chief executive David Ellison, continues to pursue Warner<\/a> with a rival all-cash proposal.<\/p>\n

Paramount has offered about $108 billion for the entire Warner Bros. Discovery group, or roughly $30 a share, and has made clear it is prepared to take its case directly to shareholders.<\/p>\n

Earlier this month, Paramount said it planned to launch a proxy fight for seats on the Warner board.<\/p>\n

Last week, it also filed a lawsuit <\/a>seeking to force Warner to release more detailed information about its deal with Netflix, though a judge declined to expedite the case.<\/p>\n

The legal skirmishes and rival bids have turned the contest into one of the most closely watched corporate battles in the global media industry.<\/p>\n

Valuing the cable business<\/h2>\n

A key difference between the two offers lies in how they treat Warner\u2019s traditional television assets.<\/p>\n

Under Netflix\u2019s proposal, Warner will carve out its cable networks, including CNN, TNT, and Food Network, into a separate publicly traded company.<\/p>\n

Warner argues this structure allows shareholders to retain exposure to potential upside in the cable business, an argument Paramount has rejected.<\/p>\n

Paramount has said it believes the carved-out business has little to no value.<\/p>\n

In its latest filing on Tuesday, Warner also detailed how it values the cable unit, with estimates ranging from $1.33 to $6.86 a share.<\/p>\n

That implied value would be added to Netflix\u2019s $27.75-per-share cash offer for the rest of the company, a calculation Warner hopes will help investors compare the competing bids.<\/p>\n

Financial outlook for networks<\/h2>\n

Warner also disclosed financial projections for its global networks business over the next five years.<\/p>\n

The company expects the unit to generate about $17 billion in revenue and $5.4 billion in adjusted Ebitda in 2026.<\/p>\n

By 2030, those figures are projected to decline to $15.6 billion and $3.8 billion, reflecting ongoing pressure on traditional television.<\/p>\n

CNN was the only network for which Warner provided detailed forecasts.<\/p>\n

The news channel is expected to generate $1.8 billion in revenue this year, rising to $2.2 billion by 2030, with adjusted Ebitda of about $600 million, roughly flat over the period.<\/p>\n

Debt and structural changes<\/h2>\n

Warner said it is also making changes to the balance sheet of the cable business it plans to spin off.<\/p>\n

Under the revised Netflix agreement, the amount of debt allocated to Discovery Global, the entity that will house the cable networks, will be reduced by $260 million.<\/p>\n

The company said the reduction reflects better-than-expected cash flow performance last year and is intended to ease concerns that a heavy debt load could deter investors from backing the spun-off business.<\/p>\n

Market reaction and next steps<\/h2>\n

The revised deal removes a so-called collar that had been designed to protect Warner shareholders from large swings in Netflix\u2019s share price between signing and closing.<\/p>\n

Netflix shares have been trading below the lower end of that range since the deal was announced in December and fell further after Paramount revealed its hostile bid.<\/p>\n

Netflix shares have declined about 15% since the original announcement, though they rose after reports emerged that the company was considering an all-cash offer.<\/p>\n

With regulators now reviewing the revised agreement and Paramount showing no sign of backing down, the coming months are likely to determine whether Netflix\u2019s cash-rich approach is enough to secure Warner Bros. Discovery \u2014 or whether the battle for one of Hollywood\u2019s most storied media groups will escalate further.<\/p>\n<\/p>\n

The post Netflix revises Warner Bros Discovery takeover to all-cash deal, WBD board approves<\/a> appeared first on Invezz<\/a><\/p>\n

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Netflix on Tuesday sweetened its bid for major parts of Warner Bros. Discovery, shifting to an all-cash offer in a move that sharpens its battle with rival suitor Paramount and accelerates the path toward a shareholder vote.The Warner Bros. Discovery board has approved Netflix\u2019s revised proposal, which raises the cash component offered to shareholders while…<\/p>\n","protected":false},"author":1,"featured_media":3134,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/3133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3133"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/3133\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/3134"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}