Netflix Eyes All-Cash Bid for Warner Bros. Discovery in 2026: Revised Offer to Speed Up Deal Amid Paramount Battle

The media merger saga intensified on January 13, 2026, as reports from Bloomberg and Reuters revealed that Netflix is actively considering amending its existing agreement to acquire Warner Bros. Discovery's (WBD) studios and streaming businesses—potentially making the entire offer all-cash. This shift comes amid fierce competition from Paramount Skydance's ongoing hostile takeover bid and aims to expedite a deal that could reshape Hollywood and streaming.Originally announced on December 5, 2025, Netflix's agreement values the targeted assets (Warner Bros. Pictures, HBO, HBO Max/Max, DC Studios, and vast libraries including Harry Potter, Game of Thrones, and DC content) at an enterprise value of $82.7 billion (equity value ~$72 billion). Under current terms, WBD shareholders receive $23.25 in cash plus $4.50 worth of Netflix stock per share (total ~$27.75 per share), subject to a collar if Netflix shares dip below certain levels. The deal follows WBD's planned Q3 2026 spin-off of its linear networks (CNN, Discovery Channel, TLC, etc.) into "Discovery Global," leaving the studios/streaming as the prize.However, Netflix shares have declined ~12-25% since the announcement (falling below the collar threshold in some periods), reducing perceived value for WBD shareholders and prompting the all-cash reconsideration. Sources familiar with discussions told Bloomberg that Netflix is exploring this to speed up closing—potentially avoiding stock volatility risks—and strengthen its position against rivals.The Competitive Landscape: Paramount Skydance's Hostile PushParamount Skydance (backed by CEO David Ellison, his father Larry Ellison's $40B+ personal guarantee, RedBird Capital, and sovereign funds from Saudi Arabia, Qatar, and Abu Dhabi) launched a $108.4 billion all-cash hostile tender offer at $30 per share for the entire WBD. This includes the networks Netflix doesn't want. Paramount has amended its bid multiple times, sued in Delaware Chancery Court for more disclosure on why WBD favors Netflix, and threatened a proxy battle at WBD's 2026 annual meeting to install board members supportive of its offer.WBD's board has unanimously rejected Paramount's proposals (multiple times, most recently January 7, 2026), calling them inferior, riskier (due to high leverage 7x EBITDA), and not a "superior proposal" under the Netflix merger agreement. WBD urges shareholders to back Netflix for a "more certain" path with an investment-grade balance sheet and strong free cash flow ($12B projected for 2026).Netflix has welcomed these rejections and refinanced portions of its $59B bridge loan (adding $25B in new facilities) to ensure funding certainty.Broader Implications for Streaming & EntertainmentIf Netflix Succeeds: It gains HBO's prestige content, Warner Bros.' film/TV powerhouse, and massive libraries—supercharging its originals pipeline, international growth, and ad-tier strategy. Combined, Netflix could dominate premium streaming while spinning off linear TV. Regulatory & Political Scrutiny: Antitrust concerns loom (Netflix + HBO could consolidate power), plus external pressure (e.g., President Trump's calls to "STOP THE NETFLIX MERGER" and sell CNN). Paramount argues its deal faces smoother approval. Industry Impact: A Netflix win accelerates streaming consolidation; Paramount's could preserve more linear assets but add massive debt. The deal isn't finalized—WBD separation into Discovery Global (Q3 2026) precedes closing, and Paramount's tender offer deadline is January 21, 2026 (though extensions possible).At digital8hub.com, we cover entertainment trends 2026, streaming industry news, mergers & acquisitions, business analysis, and tech intersections. For insights on streaming wars, content strategies, or gadgets enhancing viewing (smart TVs, VR cinema), check our guides on movies, tech trends, and balanced living.This all-cash pivot could tip the scales in Netflix's favor—Hollywood's next blockbuster merger hangs in the balance.