Netflix Fast-Tracks $83bn Deal to Avoid Long War with Paramount

Netflix is hitting the accelerator on its acquisition of Warner Bros Discovery, aiming to wrap up the $83 billion deal with a new all-cash offer. The move is a preemptive strike to cut short a potential long-term battle with Paramount Skydance, which has launched a hostile bid to take over the media conglomerate.
The urgency is driven by Paramount’s aggressive tactics. The rival studio, backed by billionaire Larry Ellison, has tabled a $108.4 billion offer and is actively seeking to replace WBD board members to get it approved. WBD has previously dismissed Paramount’s offer as “inadequate” due to its debt structure, preferring the strategic fit with Netflix.
By switching to all-cash, Netflix removes the complications of stock valuation and equity splits regarding WBD’s cable networks. Under the original terms, shareholders were to receive shares in a spin-off company for assets like CNN and Cartoon Network. The new terms focus on a clean cash payout for the studio and streaming assets, simplifying the decision for shareholders.
However, speed cannot entirely bypass regulatory scrutiny. The deal faces significant headwinds from US politicians who worry about antitrust issues. The combined entity would hold a massive share of the streaming market, a fact that has led to calls for the deal to be blocked or heavily scrutinized.
Despite these challenges, the market is betting on Netflix. WBD shares saw a 1.6% boost, and Netflix shares rose 1% as news of the expedited plan broke. The strategy is clear: close the deal quickly with cash before the opposition—corporate or political—can gather enough strength to stop it.