Netflix has revised its pending acquisition agreement with Warner Bros. Discovery to an all-cash transaction valued at an enterprise value of $82.7 billion. The updated terms, announced on January 20, 2026, provide Warner Bros. Discovery shareholders with $27.75 in cash per share for the company’s studios and streaming assets. This change eliminates the previous mix of cash and Netflix stock, which had included a variable component tied to Netflix’s share price fluctuations.
The original deal, first revealed in early December 2025, involved Netflix acquiring Warner Bros.’ film and television production studios, the HBO and HBO Max streaming service, and the company’s games division. That agreement carried the same overall enterprise value but structured roughly 84 percent in cash with the remainder in Netflix shares, subject to a pricing collar that could have adjusted the payout if Netflix’s stock value dipped significantly. By shifting to a fully cash-based structure, the companies aim to deliver greater certainty and predictability for shareholders, removing exposure to market volatility in Netflix’s equity.
The transaction remains contingent on Warner Bros. Discovery completing its planned separation of its linear television networks business into a standalone publicly traded entity called Discovery Global. This spin-off, now anticipated in the third quarter of 2026, will include assets such as CNN, TBS, HGTV, Food Network, and Discovery+. Once separated, Netflix will proceed with purchasing the remaining Warner Bros.-focused operations. The overall process requires approvals from regulators in the United States and Europe, including reviews by the Federal Trade Commission, the Department of Justice’s antitrust division, and the European Commission. Hart-Scott-Rodino filings have already been submitted to U.S. authorities, and discussions with competition regulators are underway. The companies expect the deal to close within 12 to 18 months from the initial announcement date.
This revision accelerates the timeline for shareholder input. Warner Bros. Discovery has filed a preliminary proxy statement with the Securities and Exchange Commission, setting the stage for a special shareholder vote on the Netflix transaction as early as April 2026. Both companies’ boards have unanimously approved the amended agreement, emphasizing its benefits for long-term growth and audience value.
The move comes amid intense competitive pressure in the media industry. Paramount Skydance has pursued a rival all-cash hostile bid to acquire all of Warner Bros. Discovery for $30 per share, a proposal backed by significant financing from investors including prominent business figures and sovereign wealth funds. That offer would encompass the entire company, including the networks slated for spin-off. Warner Bros. Discovery has rejected multiple iterations of the Paramount bid, maintaining that its arrangement with Netflix better serves shareholder interests. The bidding contest has driven substantial gains in Warner Bros. Discovery’s stock price since late 2025, reflecting investor enthusiasm for potential consolidation.
Strategically, Netflix views the acquisition as an opportunity to bolster its content library with iconic franchises, expansive production capabilities, and a premier premium streaming service. The addition of Warner Bros. assets would enhance Netflix’s ability to invest in original programming, expand domestic production facilities, and support job growth in the creative sector. For Warner Bros. Discovery, the deal facilitates a focused exit from certain high-value entertainment properties while allowing the remaining networks business to operate independently.
The entertainment sector continues to evolve rapidly, with streaming platforms seeking scale through major content acquisitions to compete effectively. This transaction, if completed, would represent one of the largest deals in media history and could influence future consolidation trends among legacy studios and digital players. Industry observers note that regulatory scrutiny will play a pivotal role, given the size and market implications of combining two major content powerhouses. As the shareholder vote approaches and regulatory processes advance, the outcome will likely set precedents for how media companies navigate ownership changes in an increasingly competitive streaming era.
Please add Cord Cutters News as a source for your Google News feed HERE. Please follow us on Facebook and X for more news, tips, and reviews. Need cord cutting tech support? Join our Cord Cutting Tech Support Facebook Group for help.