Netflix prepares cash-only bid for Warner Bros Discovery

Netflix is preparing to make an all-cash offer for Warner Bros Discovery’s film studios and streaming operations, according to a source familiar with the matter. 

The potential offer comes amid a competitive takeover battle involving Paramount Skydance, which has put forward a rival all-cash bid for the entire company, including its cable television assets. Warner Bros Discovery has so far leaned towards Netflix’s proposal, despite Paramount revising its offer and adding additional equity backing.

Netflix’s initial deal was valued at $82.7 billion and focused on Warner Bros Discovery’s film and streaming assets. Paramount’s competing bid stands at $108.4 billion for the full business. Warner Bros Discovery’s board has previously cited concerns around the debt financing involved in Paramount’s offer and the associated execution risks.

Paramount has challenged the process by filing a lawsuit seeking greater disclosure around the Netflix deal and has said it plans to nominate directors to Warner Bros Discovery’s board. It argues that its all-cash offer provides greater certainty and fewer regulatory hurdles.

Shares of both Netflix and Warner Bros Discovery closed higher following reports of the planned bid, while Paramount’s stock remained flat. Neither Netflix nor Warner Bros Discovery commented on the developments.

The takeover contest has drawn political scrutiny in the US, with lawmakers raising concerns about further consolidation in the media and entertainment sector. The outcome is being closely watched as legacy studios face mounting pressure from streaming platforms and shifting viewing habits.