Los Angeles, Jan. 21, 2026, 12:20 PST
- Netflix shifted its Warner Bros Discovery deal to an all-cash offer at $27.75 per share, leaving the price intact
- Paramount Skydance’s tender offer for Warner Bros, priced at $30 per share, is due to expire on Wednesday
- Warner Bros filings forecast Discovery Global Networks revenue around $17 billion in 2026, dropping to roughly $15.6 billion by 2029
Netflix has shifted its bid for Warner Bros Discovery’s studio and streaming operations to an all-cash offer, holding steady at $27.75 per share. This move aims to block Paramount Skydance’s competing bid. Warner Bros’ board has approved the updated terms, while Paramount’s tender offer is due to expire Wednesday. 1
Investors face a crunch. Warner Bros shareholders must choose between a set cash payout plus a slice of a cable-heavy spinoff, and Paramount’s higher all-cash offer—one the Warner board has labeled as riskier.
Switching to an all-cash deal removes a key market variable from the equation. Netflix’s original offer involved stock, but Paramount pushed back, saying volatile share prices made its bid easier to assess.
Netflix and Warner Bros confirmed the amended deal maintains the $27.75-per-share valuation. Shareholders will also get shares in Discovery Global once that unit spins off from Warner Bros. The split is expected to take six to nine months. The full transaction should wrap up 12 to 18 months after the initial agreement, pending regulatory and shareholder approval. Warner Bros CEO David Zaslav described it as “combining two of the greatest storytelling companies.” 2
Warner Bros released a preliminary proxy statement detailing forecasts and valuation estimates for Discovery Global, the planned spinoff set to include CNN, TNT Sports, and Discovery+. The filing projects networks revenue hitting roughly $17.0 billion in 2026, then declining to around $15.6 billion by 2029. An implied equity value for Discovery Global tops out at $6.86 per share, based on a selected transactions analysis. The document also highlights adjusted EBITDA as a key earnings metric, serving as a stand-in for operating cash profit. 3
Paramount is making a direct appeal to shareholders with a tender offer of $30 per share in cash, urging them to sell. Warner Bros, however, is pushing back, advising investors to reject the bid. According to Warner Bros’ tender-offer filing, it faces a $2.8 billion fee payable to Netflix if it abandons the Netflix deal for a better offer. On the flip side, Netflix would owe $5.8 billion if regulators block the deal after the March 2027 long-stop date. The filing also highlights Paramount’s lawsuit in Delaware, aiming to accelerate disclosures before the Jan. 21 deadline. 4
Netflix is stepping up its game as investors absorbed a modest holiday-quarter beat alongside a cautious outlook. The company reported $12.1 billion in revenue and adjusted earnings of 56 cents per share, with paid memberships surpassing 325 million. Despite this, the stock dropped more than 4% after hours. Netflix projected 2026 revenue between $50.7 billion and $51.7 billion, and CFO Spencer Neumann told investors advertising revenue is expected to hit about $3 billion. To back its all-cash bid, Netflix raised its $59 billion bridge-loan commitment by $8.2 billion and halted share buybacks. Michael Ashley Schulman of Running Point Capital Advisors noted Netflix “has not shied away” from long-term bets, even when the stock takes a hit. 5
Wednesday saw Netflix executives defending the size of their deal and a clear break from their “build, don’t buy” stance. Co-CEO Greg Peters said they dug deep during due diligence, uncovering assets that might shift Netflix’s strategy — highlighting Warner’s theatrical business and the HBO brand. He also pointed to mounting pressure from tech competitors like Alphabet’s YouTube. 6
The battle isn’t finished. Paramount could boost its offer or improve terms, but the deal still needs regulatory approval and a shareholder green light — hurdles that often delay or derail major media mergers.
Netflix is keeping it straightforward for now: cash upfront, plus whatever value investors see in Discovery Global once it starts trading independently. Paramount, on the other hand, wants shareholders to accept a bigger cash offer and have faith that its financing and approvals will withstand the scrutiny.
