Netflix is reportedly considering an all-cash offer for Warner Bros studios and streaming assets. This move aims to expedite shareholder approval and neutralize a competing offer from Paramount Skydance. While an initial agreement included cash and stock components, removing the stock portion could significantly simplify accounting and regulatory procedures.
According to editorial sources, an all-cash offer could significantly accelerate regulatory review and the Warner Bros Discovery shareholder vote by eliminating complex stock valuation and accounting processes. In this scenario, a shareholder vote could potentially take place in late February or early March 2026, which is months earlier than with an equity-based deal.
This decision is reportedly a response to Paramount Skydance's unsolicited, all-cash offer of $30 per share for the entire company. That offer proposes a higher valuation than Netflix's previous cash-and-stock combination offer of $27.75, intensifying the competition.
It is noted that Warner Bros Discovery's board had previously expressed concerns about Paramount's debt-financing approach and the overall value of the offer. Simultaneously, Netflix's initial stock offer was considered risky by shareholders against the backdrop of the company's stock price decline. An all-cash offer aims to alleviate concerns related to this volatility.
However, the increasing consolidation in the media sector is being closely monitored by lawmakers and industry groups. They emphasize that such mergers could lead to price increases and reduced consumer choice. While an all-cash offer simplifies financial processes, it may not entirely eliminate antitrust risks.