In the high-stakes battle for control of Warner Bros. Discovery’s prized assets, Netflix is reportedly exploring a major revision to its acquisition proposal: shifting from a mixed cash-and-stock offer to an all-cash structure. According to a Bloomberg report published on January 13, 2026, the streaming giant has held internal discussions about making its bid entirely in cash for Warner Bros. Discovery’s (WBD) studios and streaming businesses, including iconic properties like Warner Bros. Pictures, HBO, HBO Max (now Max), DC Studios, and a vast media library.
The original agreement, announced in December 2025, valued the deal at an enterprise value of $82.7 billion, with WBD shareholders receiving $27.75 per share—broken down as $23.25 in cash and $4.50 worth of Netflix common stock. This structure was seen as a strategic fit, allowing Netflix to bolster its content arsenal with premium franchises such as Harry Potter, Superman, Batman, and acclaimed HBO series like Succession and The White Lotus, while giving WBD investors exposure to Netflix’s growth through equity.
However, the cash-and-stock component has drawn scrutiny amid market volatility and competition from rival bidder Paramount Skydance. Paramount, led by CEO David Ellison and backed by significant equity from his father, Oracle co-founder Larry Ellison, has aggressively pursued a full acquisition of WBD—including its cable networks like CNN, TNT Sports, and Discovery channels—for $30 per share in all cash, valuing the entire company at approximately $108.4 billion. Paramount has repeatedly emphasized that “cash is king,” arguing its offer provides greater certainty, faster regulatory approval, and superior value compared to Netflix’s proposal, which involves a planned spin-off of WBD’s Global Linear Networks into a new entity called Discovery Global.
The pressure from Paramount intensified recently. On January 12, Paramount filed a lawsuit in Delaware Chancery Court demanding that WBD release detailed documentation on its decision-making process, including valuation math for the Netflix deal and the Discovery Global spin-off. Paramount claims the board has withheld critical information that would allow shareholders to properly compare the offers. It also announced plans for a proxy fight, intending to nominate its own slate of directors at WBD’s upcoming annual meeting to push for engagement with its bid and potentially derail the Netflix transaction from within.
WBD’s board has firmly rejected Paramount’s advances twice, calling the hostile offer “inadequate” and “riskier” due to its heavy reliance on debt financing—potentially the largest leveraged buyout in history—and other conditions. The board has urged shareholders not to tender shares by Paramount’s January 21 deadline and reaffirmed its commitment to the Netflix agreement, which it views as delivering higher certainty and long-term value, especially given Netflix’s strong balance sheet and investment-grade credit rating.
Netflix has declined to comment on the Bloomberg report, but the news appeared to buoy investor sentiment. Netflix shares rose about 1% on January 13 in a broader down market, suggesting some relief that the company remains committed to the acquisition despite the fireworks. Sources familiar with the talks told Bloomberg that the proposed all-cash shift aims to expedite the process, which could otherwise take 12-18 months to close amid regulatory scrutiny, political opposition (including concerns from figures like President Trump about media consolidation and CNN’s future), and the ongoing Paramount challenge.
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