Netflix revises Warner Bros. Discovery acquisition deal to all-cash

Netflix announced Tuesday that it adjusted its acquisition offer to Warner Bros. Discovery (WBD)'s studio and streaming assets to an all-cash offer.

The two firms said in a Securities and Exchange Commission filing that the deal would remain at $27.75 per WBD share, the same structure as the previous transaction. They initially reached a deal in December, composed of a combination of cash and stock at an equity value of $72 billion.

The statement indicated that WBD shareholders would also receive the additional value of Discovery Global shares following divestment from WBD, and noted that the transaction would be financed through a combination of cash availability, existing credit facilities and committed financing sources.

The updated offer was unanimously approved by WBD's board, as per the filing Tuesday. In favor of the Netflix deal, the board has twice advised shareholders to reject Paramount's bid.

In its pursuit of WBD, Paramount has filed a lawsuit for information and initiated a proxy battle, telling WBD shareholders that it plans to propose directors for election to the Warner Bros. Discovery board at the company's annual 2026 meeting.

Additionally, WBD submitted a preliminary proxy statement Tuesday, requesting shareholder approval for its agreement with Netflix.

WBD's cable TV networks would be split off into a brand-new, publicly traded company called Discovery Global if the merger is approved.