Netflix and Warner Bros. Discovery (WBD) have officially amended their merger agreement to an all-cash transaction. The move comes as Netflix seeks to fend off a persistent hostile takeover attempt from Paramount Skydance and provide immediate “value certainty” to WBD shareholders.
While the total equity valuation of the deal remains at $27.75 per share, the structure has changed significantly. Previously, the offer was a “cash-and-stock” hybrid. By moving to a pure cash model, Netflix is effectively removing the market volatility of its own stock from the equation.
“Today’s revised merger agreement brings us even closer to combining two of the greatest storytelling companies in the world and with it even more people enjoying the entertainment they love to watch the most,” said David Zaslav, President and CEO of Warner Bros. Discovery. “By coming together with Netflix, we will combine the stories Warner Bros. has told that have captured the world’s attention for more than a century and ensure audiences continue to enjoy them for generations to come.”
The decision to go all-cash is widely viewed as a defensive maneuver against Paramount Skydance. For weeks, Paramount has been courting WBD shareholders with a hostile $30-per-share all-cash bid for the entire company.
By matching Paramount’s all-cash format, Netflix removes a key talking point used by its rival: that a stock-heavy deal was too risky. Since the merger was first announced in December 2025, Netflix’s stock has seen some turbulence, briefly making the original “stock portion” of the deal look less attractive. This amendment effectively “locks in” the value for WBD investors.
