Netflix, Inc. (NASDAQ: NFLX) is reportedly revising its $83 billion bid for Warner Bros Discovery, Inc. (NASDAQ: WBD) into an all-cash offer, a change that could redefine one of the largest takeover attempts in entertainment history. The move, first reported by Bloomberg, reflects Netflix’s effort to accelerate negotiations, simplify the deal terms, and strengthen its hand amid competing interest from Paramount Skydance (NASDAQ: PSKY) and its production partner Skydance Media.
For months, analysts have followed speculation that Netflix wants to expand beyond streaming libraries into full-scale studio operations, giving it greater control over content development and global distribution. Warner Bros Discovery owns some of the industry’s most valuable franchises, including the DC Universe, “Harry Potter,” and HBO’s extensive original programming catalog. If Netflix succeeds, it would gain not only a broader creative base but a fully developed international distribution network, a prize that could significantly reshape the power balance among major media groups.
An all-cash offer can be viewed as more straightforward for shareholders. It eliminates uncertainty about equity values in the acquiring company, especially in a volatile market. In this case, Warner Bros Discovery investors might find the appeal of guaranteed cash more persuasive than stock-based offers, particularly if they remain uncertain about how long a combined entity might take to deliver returns. Historically, shareholders in takeover targets often prefer the certainty of immediate payment to the long-term potential of stock in the merged business.
That preference could help explain why Netflix is said to be removing the equity component from its original plan. A pure cash structure can also shorten regulatory review because it simplifies accounting and financing disclosures. However, it also carries risk. Funding such a large deal in cash would likely involve complex financing arrangements, including new debt, and could test Netflix’s ability to maintain its credit standing. The company currently generates strong cash flow from its streaming platform, but $83 billion remains a significant leap compared with past acquisitions in the entertainment sector.
The timing of Netflix’s reported shift appears strategic. Paramount Skydance have been pursuing their own merger proposal, which includes buying out Paramount’s controlling shareholder while combining Skydance’s production assets. That process has become increasingly contentious, as shareholder resistance and valuation disputes slow progress. By switching to an all-cash structure, Netflix could signal both speed and confidence, perhaps appealing to Warner Bros Discovery investors tired of drawn-out negotiations (Variety).
Beyond the mechanics of bidding, the deal raises broader questions about the state of the streaming industry. After years of rapid expansion, the major players, Netflix, Disney, Amazon, Apple, and Warner Bros Discovery, are shifting priorities toward profitability. Subscriber growth has slowed across mature markets, while content costs remain high. Consolidation offers one path forward. By acquiring an established studio network, Netflix could reduce its dependence on licensed content and secure long-term control over major franchises, something competitors like Disney already enjoy.
Still, such a merger would not happen overnight. Regulatory agencies in the U.S. and abroad would likely scrutinize the combination of two global entertainment heavyweights. Questions could arise about market concentration, production diversity, and the fate of smaller creative partners. Similar reviews in past mergers, such as Disney’s 2019 acquisition of 21st Century Fox, took close to a year to complete. For Netflix, the road from proposal to completion could stretch well into next year, depending on political and regulatory sentiment in key markets.
For now, the story illustrates how fluid and competitive the streaming business has become. In a market that once celebrated rapid subscriber growth above all else, established players now face pressure to deliver sustainable business models. Whether or not this particular deal succeeds, Netflix’s reported offer signals that the next phase of the streaming industry may depend less on who creates the most shows and more on who controls the pipelines that bring them to audiences worldwide.
