Netflix upgrades to all-cash $72B offer for Warner Bros. Discovery, aiming for April shareholder vote
Jan 20, 2026
Key Points
- Netflix switches its Warner Bros. Discovery bid to all-cash at $27.75 per share, matching Paramount's structural demand while holding the $72 billion valuation flat.
- The all-cash structure removes deal certainty friction and clears shareholder objections around payment timing, positioning Netflix to accelerate a shareholder vote to April.
- Netflix reduces debt on Discovery Global, the unit housing CNN and cable channels, as Warner projects revenue contracting to $15.6 billion by 2030 despite CNN's projected growth.
Summary
Netflix upgraded its offer for Warner Bros. Discovery to $27.75 per share in all cash, keeping the total valuation at $72 billion. The move replaces Netflix's previous cash-and-stock structure and positions the deal for a shareholder vote by April.
Paramount's all-cash bid forced Netflix to match those terms. Netflix co-CEO Greg Peters said the revised agreement accelerates the process for Warner shareholders while demonstrating commitment to the transaction.
The new deal reduces by $260 million the debt placed on Discovery Global, the company housing cable channels including CNN, TNT, and Food Network. CNN is a high-margin asset projecting $600 million in profit on $1.8 billion in revenue, though the broader unit is shrinking.
Warner's financials show contraction across the group. The company projects $17 billion in revenue and $5.54 billion in adjusted EBITDA for 2026, falling to $15.6 billion and $3.8 billion by 2030. CNN is one of the few projected growth businesses in the bundle, with revenue expected to rise to $2.2 billion by 2030.
Netflix appears willing to absorb regulatory complexity and move quickly to close. The all-cash structure removes shareholder objections around deal certainty and payment timing, traditional friction points in tech acquisitions of legacy media. Whether Paramount can match or beat the offer remains unclear, but Netflix's flexibility and speed suggest it holds the advantage.