Netflix is reworking its offer for Warner Bros. Discovery’s studio and streaming assets, moving toward an all-cash bid in an effort to accelerate closing and fend off a persistent challenge from Paramount Skydance. People familiar with the matter say the revised terms are intended to speed up regulatory and shareholder approvals amid rising political scrutiny and an aggressive campaign by the Ellisons to block the deal.
Netflix has already secured $59 billion in financing from Wall Street banks, including a record-setting bridge loan. About $25 billion of that has already been refinanced into longer-term debt. Analysts say the company still has room to borrow more while maintaining a strong credit profile. “Netflix has a very strong balance sheet with modest net leverage,” said Bloomberg Intelligence’s Stephen Flynn.
Warner Bros. selected Netflix’s bid back in December, but Paramount Skydance has continued to push for a reversal. David Ellison and Oracle co-founder Larry Ellison have offered $108.4 billion in cash for the entire Warner Bros. Discovery business, including its cable networks. They have backed their bid with $40.4 billion in equity and launched a tender offer for Warner shares. They have also sued for more disclosure around Warner’s valuation of the Netflix proposal and are planning to nominate new board members to oppose the sale.
Despite the higher headline value, Warner Bros. has remained aligned with Netflix. The Ellisons’ aggressive tactics, including a personal guarantee from Larry Ellison, have raised concerns but have not yet shifted Warner’s board.
At the close on Tuesday, shares of Warner Bros. Discovery rose 1.6% to $28.86, while Netflix gained 1% to $90.32. Paramount shares were unchanged.
Although the deal is not yet finalized, Netflix’s pivot to an all-cash structure signals urgency and confidence. If completed, this would be one of the largest acquisitions in the streaming space and a pivotal moment in the ongoing consolidation of the entertainment industry.
