Netflix is expected to revise its proposed acquisition of Warner Bros. Discovery's streaming and film studio assets, shifting from a mixed-stock-and-cash offer to a fully cash-based transaction. The move follows preliminary talks concluded in December and signals growing confidence in the deal's viability.
- Netflix is expected to revise its offer for Warner Bros. Discovery's streaming and studio assets to an all-cash structure.
- The new offer is projected at approximately $45 billion, up from the initial $39 billion mixed-consideration deal.
- The shift aims to reduce shareholder dilution and improve deal certainty amid market volatility.
- Funding will come from Netflix’s existing $22 billion in cash and marketable securities.
- Regulatory approval timelines may improve due to reduced structural complexity.
- The transaction remains subject to antitrust review by U.S. and EU authorities.
Netflix is preparing to modify its acquisition proposal for Warner Bros. Discovery’s streaming and film studio operations, with an anticipated shift toward an all-cash offer. The adjustment comes after initial negotiations in December, where the deal was structured with a blend of stock and cash consideration. The new framework is expected to be finalized in early February, reflecting Netflix’s desire to de-risk the transaction amid market volatility and shareholder scrutiny. Under the revised terms, Netflix is set to offer approximately $45 billion in cash, up from the original $39 billion mix of equity and cash. This increase is driven by rising valuation expectations for Warner Bros. Discovery’s media assets, particularly its streaming platform Max and its library of film and television content. The change is also intended to address concerns from Warner Bros. Discovery’s board about dilution and long-term strategic alignment. The adjustment has significant implications for both companies’ balance sheets and investor sentiment. Netflix, which currently holds over $22 billion in cash and marketable securities, would fund the transaction through existing liquidity and potential short-term debt issuance. Meanwhile, Warner Bros. Discovery, facing pressure to unlock value for shareholders, views the all-cash structure as more favorable for immediate capital return and reduced complexity. The revised deal could accelerate the timeline for regulatory approval, particularly in the United States and European Union, where antitrust concerns have been a key hurdle. Financial analysts note that an all-cash offer may improve the likelihood of a smooth closing, though the final approval remains contingent on competition authorities and shareholder votes.