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Netflix Prepares All-Cash Bid for Warner Bros Discovery Studios and Streaming Assets

By  |  January 14, 2026

Netflix is moving toward an all-cash offer for Warner Bros Discovery’s studios and streaming businesses, according to Reuters, citing a source familiar with the matter. The shift to an all-cash structure is intended to speed up a transaction that is expected to take months to complete and has already drawn political scrutiny and competitive pushback.

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    Per Reuters, the revised approach is designed to streamline the sale process amid resistance from lawmakers and from rival bidder Paramount Skydance. Bloomberg News first reported that Netflix was preparing the new bid earlier on Tuesday. Netflix declined to comment on the Bloomberg report, while Warner Bros did not immediately respond to a Reuters request for comment.

    Investors reacted modestly to the developments. According to Reuters, Netflix shares rose 1.02% by the close of trading on Tuesday, while Warner Bros Discovery shares finished up 1.62%. Shares of Paramount ended the session unchanged.

    Netflix’s earlier proposal valued Warner Bros’ film and streaming assets at about $82.7 billion and included a mix of cash and stock, per Reuters. Paramount, by contrast, has offered roughly $108.4 billion in cash for the entire Warner Bros Discovery company, including its cable television networks.

    Despite the higher headline value of Paramount’s bid, Warner Bros has continued to favor Netflix’s offer, according to Reuters. Paramount has sought to strengthen its proposal by adding significant financial backing, including a $40 billion equity commitment from Oracle co-founder Larry Ellison, who is also the father of Paramount chief executive David Ellison.

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    Related: Paramount Urges Congress to Scrutinize Netflix Deal for Warner Bros. Discovery Assets

    Warner Bros’ board has expressed concerns that Paramount’s offer relies heavily on debt financing, which could increase the risk that the deal fails to close. According to Reuters, the board has maintained that Paramount’s proposal “remains inadequate.”

    The contest between Netflix and Paramount has intensified into a high-profile battle for Warner Bros’ valuable studios and content library. Per Reuters, those assets include major entertainment franchises such as Harry Potter, Game of Thrones, Friends and the DC Comics universe, along with classic films like Casablanca and Citizen Kane.

    The takeover fight has become one of the most closely watched deals in Hollywood, according to Reuters, as traditional studios grapple with the growing dominance of streaming platforms and unpredictable box office revenues. At the same time, lawmakers from both major political parties have raised concerns that further consolidation in the media industry could lead to higher prices and fewer choices for consumers.

    Paramount escalated the dispute on Monday by filing a lawsuit seeking more information about Warner Bros’ agreement with Netflix and announcing plans to nominate its own directors to Warner Bros’ board, according to Reuters. Paramount has argued that its all-cash offer of $30 per share for the entire company is superior to Netflix’s earlier cash-and-stock proposal of $27.75 per share for the studios and streaming businesses, and that its bid would face fewer regulatory obstacles.

    The financial stakes of the negotiations are high. Per Reuters, Netflix has agreed to pay a $5.8 billion termination fee if it fails to secure regulatory approval for its deal, while Warner Bros would owe Netflix $2.8 billion if it abandons the agreement in favor of another bidder.

    Source: Reuters