Netflix is preparing to shift its strategy in the escalating battle for Warner Bros. Discovery by moving toward an all-cash offer for the company’s studios and streaming assets.
According to Reuters, the revised approach is intended to expedite a deal that has become increasingly contentious as rival bidder Paramount intensifies its opposition and legal pressure mounts.
The potential change would mark a notable adjustment from Netflix’s earlier proposal, which combined cash and stock to acquire Warner Bros. Discovery’s film studio and streaming businesses.
Sources told Reuters the move to an all-cash structure is designed to simplify the transaction and address criticism surrounding valuation mechanics and market volatility tied to Netflix’s stock.
Netflix declined to comment on reports of the change, while Warner Bros. Discovery has not publicly responded.
The development comes as Paramount escalates its challenge. Earlier this week, Paramount filed a lawsuit seeking more information about Warner’s agreement with Netflix and announced plans to nominate directors to Warner Bros. Discovery’s board. Paramount has argued that it has been unfairly sidelined despite repeatedly improving its bid.
The broader backdrop is a months-long takeover battle that has reshaped Warner Bros. Discovery’s future. Netflix initially emerged as the preferred bidder with a deal valued at roughly $82.7 billion, targeting Warner’s studios and streaming operations while leaving the company’s cable networks to be spun off separately. Warner’s board has consistently said that structure delivers greater long-term value and reduces execution risk.
Paramount countered by launching a hostile, all-cash bid for the entire company, valuing Warner Bros. Discovery at $108.4 billion, or $30 per share. To strengthen its position, Paramount added a personal guarantee of more than $40 billion from Oracle co-founder Larry Ellison and matched Netflix’s $5.8 billion breakup fee.
Netflix’s willingness to pivot to an all-cash offer appears to reinforce Warner’s stated preference for certainty. The streaming giant has already agreed to pay a $5.8 billion termination fee if regulatory approval cannot be obtained, while Warner would owe Netflix $2.8 billion if it walks away from the agreement. Warner has cited Netflix’s balance sheet and scale as key advantages over Paramount’s proposal.