Netflix has rewritten the terms of its bid for Warner Bros Discovery’s streaming and film business, pledging to pay entirely in cash as it seeks to outmaneuver rival suitor Paramount Skydance in a high-stakes fight for one of Hollywood’s most storied studios.

The revised proposal replaces Netflix’s earlier plan to fund the acquisition with a mix of cash and stock, a shift that both companies say is designed to inject certainty and speed into the approval process.

A Bid Built on Certainty

In a joint statement, Netflix and Warner Bros said the all-cash structure would give shareholders clearer value and allow for a faster vote on the transaction.

The move comes as Paramount Skydance continues to push its competing bid, despite repeated rejections. Netflix’s offer would hand the streaming giant control of Warner Bros’ prized catalog, including blockbuster franchises such as Harry Potter and Game of Thrones, along with streaming platform HBO Max.

Netflix has offered $27.75 per share for the streaming and film units — a valuation unchanged by the revised terms — putting the deal at roughly $72 billion (£54 billion).

Including debt, the enterprise value of the transaction is estimated at about $82 billion (£61 billion).

What Shareholders Get

Under the proposal, Warner Bros shareholders would also receive stock in the company’s remaining businesses, including CNN and other networks, which are expected to be spun off into a separate publicly traded company.

Paramount, backed by tech billionaire Larry Ellison and his family, has argued those assets are worth significantly less than Warner Bros believes. Paramount says that makes its own $30-per-share offer — valuing the entire company at about $108 billion (£80 billion) — the superior deal.

Rivalry Turns Litigious

Paramount has kept pressure on Warner Bros, recently filing a lawsuit seeking to force the release of financial details tied to the Netflix offer.

Warner Bros leadership, however, has remained aligned with Netflix, publicly questioning how Paramount plans to assemble the financing needed for its bid.

“Our amended agreement with Netflix is a testament to the board’s unrelenting focus on representing and advancing our stockholders’ interests,” said Samuel Di Piazza Jr., chair of the Warner Bros Discovery board.

He said the all-cash approach allows the company to deliver “even greater levels of certainty,” while still enabling shareholders to benefit from the spinoff of Warner Bros’ remaining brands.

Critics and Market Jitters

Both merger proposals have drawn criticism from industry observers who warn they would concentrate too much power in a single media company.

Investor unease has also surfaced. Since the deal was announced last month, Netflix shares have fallen more than 10%. They slid again in after-hours trading Tuesday, even as the company reported strong results for the final three months of 2025.

Netflix’s Financial Muscle on Display

Netflix said quarterly revenue jumped 18% from a year earlier to more than $12 billion (£9 billion), including over $1.5 billion (£1.1 billion) from advertising. Profits climbed nearly 30% to $2.4 billion (£1.8 billion).

The company now counts more than 325 million paying subscribers worldwide, an increase of over 7% from a year ago.

A Bet on Complementary Power

In a letter to shareholders, Netflix defended the acquisition, describing the two companies as “highly complementary.” Executives said the deal would deepen Netflix’s film and television slate and enable more personalized streaming experiences.

The company also highlighted plans to increase investment in U.S. production.

“Together we’ll be able to offer more opportunities to creators and strengthen the entire entertainment industry,” Netflix said.

As the Netflix and Warner Bros all cash deal moves forward, the outcome could redraw the map of global entertainment — and decide who holds the keys to Hollywood’s vault.