Netflix Switches to All-Cash Offer for Warner Bros. Discovery

Netflix has significantly strengthened its position in the high-stakes battle for Warner Bros. Discovery's prized assets. On January 20, 2026, sources familiar with the talks told Bloomberg and Reuters that Netflix is revising its existing agreement—originally announced in December 2025—to become an all-cash transaction for the studios, streaming (Max/HBO Max), and related content libraries (valued at an enterprise value of ~$82.7 billion, equity ~$72 billion).The original deal included $23.25 cash + $4.50 in Netflix stock per WBD share (subject to collar adjustments). With Netflix shares down sharply since the announcement, the equity portion lost value for WBD shareholders. By going all-cash, Netflix eliminates stock volatility risk, potentially accelerates closing (post-WBD's planned Q3 2026 linear networks spin-off), and sends a stronger signal to regulators and shareholders that it is fully committed.The move comes as Paramount Skydance continues pressing its $108.4 billion all-cash hostile tender offer ($30 per share) for the entire company—including the linear networks (CNN, Discovery, TLC) that Netflix does not want. WBD's board has repeatedly rejected Paramount's bids as inferior and riskier (due to higher leverage), but the all-cash Netflix revision could make it even harder for Paramount to prevail.Key updates:Netflix has already secured $59 billion in bridge financing (recently refinanced portions with $25 billion in new commitments), demonstrating funding certainty. WBD continues to advance the separation of its linear TV assets into "Discovery Global" (Q3 2026), after which the studios/streaming would be sold or spun off. Paramount has sued in Delaware Chancery Court demanding more transparency on why WBD prefers Netflix; it also threatens a proxy fight at WBD's 2026 annual meeting. Market reaction: WBD stock rose slightly on the news (signaling higher confidence in a deal closing), while Netflix shares were little changed. If Netflix succeeds, it would gain HBO's prestige catalog (Game of Thrones, Succession, The White Lotus), Warner Bros. film slate, DC Studios, and massive libraries—supercharging its originals pipeline and ad-tier strategy. Paramount's bid would preserve more of the traditional TV business but saddle the combined entity with significant debt.At digital8hub.com, we track streaming industry news, media mergers 2026, business strategy, entertainment trends, and tech intersections. For breakdowns of Netflix vs. Max content, merger implications for subscribers, or gadgets enhancing your binge-watching (smart TVs, sound systems), check our guides on movies, tech trends, and balanced living.The streaming consolidation race just got more intense—Netflix's all-cash pivot could be the decisive move.