U.S. streaming giant Netflix has just made the multi-billion-dollar deal for the acquisition of Warner Bros sweeter by making it all cash, as per an announcement by the company on Tuesday.
The equity portion of the deal for shareholders is valued at $72 billion, while the enterprise value, which includes WBD’s debt, is valued at $82.7 billion.
The update marks the latest in a fierce bidding war between Netflix, Paramount, and Comcast, all of whom are vying for one of the leading brands in U.S. entertainment.
The deal drew the attention of U.S. President Donald Trump as well, who told reporters at the Kennedy Center in December 2025 that he would be involved in deciding if the deal goes through.
Warner Bros Discovery owns multiple franchises in TV, movies, streaming, and animation, including superhero movies in the DC universe, the Harry Potter series, and Lord of the Rings. Through its ownership of streaming platform HBO max, WBD also holds exclusive rights over Game of Thrones, The Big Bang Theory, The Sopranos, The Wizard of Oz, and others
Entertainment conglomerate Paramount Skydance made a hostile $108.4 billion all-cash offer while Comcast offered cash and stock to WBD shareholders—if accepted, it would lead to Warner Bros Discovery being folded into its NBCUniversal unit.
Warner Bros. is no stranger to complicated, multi-layered M&A deals. Since its inception in 1923, the business has gone through multiple branding iterations, acquisitions on both sides of the dealmaking table—that is, acquiring and being acquired—and of course, mergers.
The deal has multiple implications and potential takeaways for the U.S. home entertainment and streaming industries, some of which include tighter control by Netflix over the streaming market; an improvement in its value proposition; and potential monopoly concerns.
Netflix first made the bid to buy Warner Bros and its streaming service in December 2025, offering $23.25 in cash and $4.50 of Netflix stock for each share of Warner Bros Discovery. Now, Netflix has changed its offer to $27.75 in full cash for each share of WBD.
Netflix argues that the change offers two key benefits for WBD, which are greater certainty of shareholders receiving value for their shares and an earlier vote for the transaction—a change that shows that Netflix is no longer willing to wait and is willing to be more aggressive to close what could be one of 2026’s largest deals, depending on future M&A prospects
“Today’s revised merger agreement brings us even closer to combining two of the greatest storytelling companies in the world and with it even more people enjoying the entertainment they love to watch the most,” said Warner Bros Discover’s CEO and Chairman, David Zazlav.
“By coming together with Netflix, we will combine the stories Warner Bros. has told that have captured the world’s attention for more than a century and ensure audiences continue to enjoy them for generations to come.”
Zazlav was the key business figure who oversaw the merger of Warner Bros and Discovery+ in 2022, being the CEO of Discovery+ at the time.
He is also supposed to oversee a planned splitting of WBD into two entities (Warner Bros and Discovery Global) based on announcements made in 2025—a move that, if executed, will separate the company’s television networks that were not faring so well from its more successful DTC and studio businesses. According to Netflix’s official statement, the separation into two companies is slated to happen in six to nine months after it closes its deal with Warner Bros.
“The WBD Board continues to support and unanimously recommend our transaction, and we are confident that it will deliver the best outcome for stockholders, consumers, creators, and the broader entertainment community,” said Netflix head and co-CEO Ted Sarandos.
“Our revised all-cash agreement will enable an expedited timeline to a stockholder vote and provide greater financial certainty at $27.75 per share in cash, plus the value from the planned separation of Discovery Global.”
At the time of writing, Netflix shares were trading at $88.28, while WBD shares were trading at $28.61. According to the Q3 2025 earnings report, Netflix ended September 2025 with roughly $9.3 billion in cash and $14.5 billion in debt. Revenues grew by 17% to $11.5 billion. Net income for the quarter was $2.5 billion. The report showed its two largest regional markets were North America and EMEA (Europe, the Middle East, and North Africa)
Its Q4 earnings report is expected later today, a set of financial figures that investors, speculators, and people closely associated with the deal are keenly waiting on to judge the company’s current and future prospects.