• Netflix switches to an all-cash offer for Warner Bros Discovery at $27.75 per share.
• The revised proposal aims to expedite the shareholder vote against a rival bid from Paramount.
• Warner Bros board unanimously supports Netflix's offer while rejecting Paramount's superior claims.

Netflix has implemented a strategic shift in its acquisition proposal for Warner Bros Discovery, moving to an all-cash offer of $27.75 per share, thus simplifying the previously mixed structure that included stock. The total proposal is valued at approximately $82.7 billion, with this amendment designed to enhance certainty for shareholders and fast-track the timeline for a shareholder vote, which is now anticipated by April 2026, according to Business Insider and Reuters.

This decision comes in response to ongoing rival efforts from Paramount Skydance, which is pursuing its own bid for Warner Bros. While Netflix's original proposal included a mix of cash and stock, the new offer removes the stock component that had become burdensome due to a decline in Netflix’s share price. With this all-cash deal, Netflix’s leadership emphasized the clarity and immediacy of value for Warner Bros shareholders as crucial advantages, as noted by India Times and South China Morning Post.

Warner Bros' board has unanimously backed Netflix's revised proposal while simultaneously dismissing Paramount's claims of having a superior bid. Warner Bros asserts that the current terms not only clarify the structure of the deal but also fortify the financial outlook by retaining access to a spin-off group named Discovery Global, which includes assets like CNN and TNT, which Paramount has attempted to devalue, claiming they are nearly worthless. Warner Bros stated that the spin-off could be valued between $1.33 and $6.86 per share based on future market scenarios, contradicting Paramount's assessment, as per India Times and Reuters.

The competition intensified further as Paramount planned to nominate its own directors ahead of the upcoming shareholder meeting, asserting that its cash offer of $30 per share for Warner Bros is more appealing. However, consistent rejections from Warner Bros have highlighted the risks and uncertainties tied to such a bid, maintaining that Netflix's investment-grade credit rating and lower leverage make it a safer choice, according to both South China Morning Post and India Times.