Netflix has a simple message for Warner Bros Discovery shareholders: take the cash and ignore Paramount. The streaming giant is restructuring its $83 billion acquisition offer to an all-cash deal, aiming to provide immediate value and convince investors to reject a hostile, debt-laden bid from Paramount Skydance.
Paramount’s offer stands at $108.4 billion, but it comes with significant financial risk. WBD’s board has already advised shareholders to reject it, citing the “inadequate” nature of the debt financing. Paramount is now trying to bypass the board by nominating new directors.
Netflix’s cash offer provides a clear alternative. The deal covers the studio and streaming assets, including HBO and the Warner Bros film library. WBD’s linear networks, such as CNN and the Cartoon Network, are not included. This structure offers a secure exit for shareholders without the uncertainty of the Paramount proposal.
The deal is facing opposition from regulators who fear a monopoly. Politicians warn that a Netflix-WBD merger would control nearly half of the streaming market. This regulatory risk is the main reason Netflix is eager to close the deal quickly.
The market reaction suggests that shareholders are listening. WBD shares rose 1.6% on the news, indicating that investors are ready to take the cash. For Netflix, the strategy is about winning the hearts and wallets of the shareholders to secure the deal.