Netflix announced that it has amended its Warner Bros acquisition to an all-cash transaction.
The all-cash transaction will still be valued at US$27.75 per WBD share.
WBD stockholders will also receive the additional value of shares of Discovery Global following its separation from WBD. The transaction will be financed through a combination of cash on hand, available credit facilities and committed financing.
The amended all-cash transaction was unanimously approved by both the Netflix and WBD boards of directors.
The companies said the amendment was made to create greater value certainty and a faster path to shareholder votes.
Netflix co-CEO Ted Sarandos said that the deal will allow Netflix and WBD to deliver broader choice and greater value to audiences worldwide.
“The WBD Board continues to support and unanimously recommend our transaction, and we are confident that it will deliver the best outcome for stockholders, consumers, creators and the broader entertainment community,” he said.
“The acquisition will also significantly expand U.S. production capacity and investment in original programming, driving job creation and long-term industry growth.”
WBD will split Warner Bros. and Discovery Global into two separate publicly traded companies six to nine months before the proposed Netflix and Warner Bros transaction.
Netflix’s decision to switch to an all-cash deal will help block out competitor Paramount, which has made hostile bids for WBD despite multiple rejections.
The rival Paramount offer would be valued at US$108.4 billion or around US$30 per share and would swallow the entire company.
This also follows Paramount suing WBD for information on the deal and why its bids were rejected.
Netflix also recently reported a record 325 million global paid subscribers and an 18% rise in revenue for Q4 2025.
During Tuesday's regular session, Netflix (NFLX: NASDAQ) stocks fell 0.84% to $87.26, Warner Bros (WBD: NASDAQ) fell 1.19% to $28.24, and Paramount Skydance fell 2.12% to $11.55.
