Netflix is moving quickly to block a hostile takeover of Warner Bros Discovery by offering quick cash for the company’s key assets. The streaming giant is restructuring its $83 billion deal to an all-cash offer, aiming to secure WBD’s studio and streaming divisions before rival Paramount Skydance can gain a foothold.
Paramount, backed by billionaire Larry Ellison, has launched a $108.4 billion bid for WBD. The offer is hostile and relies on debt financing, leading WBD’s board to reject it as “inadequate.” Paramount is now trying to replace the board with its own nominees to push the deal through.
Netflix’s response is to cut out the complexity. By offering cash, Netflix provides a certain and immediate payout to shareholders. The deal includes the Warner Bros film library and HBO, but excludes WBD’s cable networks like CNN and Discovery. This targeted acquisition strategy allows Netflix to bolster its streaming service without taking on unwanted assets.
The potential merger has raised eyebrows in Washington. Politicians are concerned that Netflix’s acquisition of WBD would create a streaming monopoly, controlling nearly half the market. This backlash is a significant threat to the deal, but Netflix is banking on speed to get it done.
The stock market responded positively to the cash plan, with WBD shares rising 1.6%. The move shows that Netflix is willing to pay a premium for speed and certainty, determined to keep WBD out of Paramount’s hands.