Paramount Put Up Or Shut Up: Netflix Forces the Issue With All-Cash WBD Offer

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Netflix has taken a decisive step to push Paramount and Skydance to either increase their offer or withdraw from negotiations.

Netflix Converts WBD Deal to All-Cash

Netflix and Warner Bros. Discovery revealed on Saturday that their planned merger will now be completed with an all-cash deal, paying $27.75 for each share.

I think this decision is all about making things clear for everyone, getting the green light from shareholders quickly, and really showing off how strong Netflix is financially. It feels like a confident move, and I’m excited to see what happens next.

Warner Bros. Discovery has submitted initial paperwork to the Securities and Exchange Commission to move up the vote for shareholders, now scheduled for late February or early March – much sooner than originally planned.

Netflix is sweetening its offer to acquire a stake in Warner Bros. Discovery. In addition to the $27.75 million in cash, Netflix estimates an additional $3 per share in value from the potential sale of Warner Bros. Discovery’s older cable networks, like CNN, which are reportedly doing well.

Gasparino: Netflix Is Forcing Paramount’s Hand

I’m hearing from Charles Gasparino at Fox Business that Warner Bros. Discovery is rushing this vote to force Skydance and Paramount Global to either finalize their deal or step aside. It feels like a clear attempt to speed things up and get a decision made.

According to a Warner Bros. Discovery executive who posted on X, this situation is forcing those involved to either reveal their intentions regarding the company’s board members or legal challenges, or withdraw from the process entirely.

Skydance has made an offer of $30 per share, but it’s considered a less attractive deal because it includes less immediate cash and depends more on things like approvals and complicated financial arrangements.

Netflix and WBD Execs Tout Speed, Certainty

In a shared statement, Warner Bros. Discovery CEO David Zaslav and Netflix’s Ted Sarandos and Greg Peters highlighted how the revised agreement will be beneficial.

  • Certainty for Stockholders: No more stock swaps or market fluctuation.
  • Faster Vote Timeline: WBD shareholders now expected to vote by April 2026.
  • Regulatory Readiness: HSR filings already submitted, no CFIUS review required.
  • No Change in Total Value: $27.75 per share in cash, plus future Discovery Global shares.

Warner Bros. Discovery Chair Samuel Di Piazza stated that the board members all agreed on the decision, describing it as a fantastic opportunity and highlighting their dedicated commitment to achieving positive results.

Warner Bros. Discovery CEO David Zaslav announced that the updated merger deal moves them closer to uniting with Netflix, creating a powerful storytelling partnership. He believes combining Warner Bros.’s century-long history of beloved entertainment with Netflix will allow even more people to enjoy the content they love, now and in the future.

Paramount’s Clock Is Ticking

Paramount and Skydance were likely to ask for more time – until after January 21st – to arrange funding or get final approval from regulators. However, Netflix recently offering a lot of cash has dramatically sped things up.

Now that Netflix is talking to regulators and prepared to spend a lot of money, Paramount and Skydance are feeling the pressure. They’ll have to increase their bid quickly if they want to compete.

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2026-01-20 18:31