Netflix moved to acquire Warner Bros. Discovery in an all-cash deal valued at $72 billion, a strategic maneuver designed to thwart a potential hostile takeover bid by Paramount. The revised agreement, announced today, replaces the original plan which involved a combination of cash and Netflix stock.

Under the new terms, Netflix will pay $27.75 per share in cash for Warner Bros. Discovery. This represents a shift from the initial offer of $23.25 in cash and $4.50 in Netflix stock per share. The all-cash offer aims to provide Warner Bros. Discovery shareholders with greater certainty and eliminate the volatility associated with market fluctuations in Netflix's stock price. Warner Bros. Discovery is targeting an April 2026 shareholder vote on the deal.

The acquisition, if successful, would significantly reshape the global media landscape. Netflix would gain control of a vast portfolio of assets, including HBO Max and Warner Bros. Studios, instantly bolstering its content library and competitive position against rivals like Disney+ and Amazon Prime Video. The deal underscores the intensifying competition within the streaming industry, where scale and content depth are increasingly crucial for attracting and retaining subscribers worldwide.

Netflix intends to finance the acquisition through a combination of its existing cash reserves, available credit facilities, and committed financing. This reflects the company's confidence in its ability to manage the substantial debt burden associated with such a large transaction. The move also signals Netflix's long-term commitment to investing in content and expanding its global reach.

The acquisition of Warner Bros. Discovery by Netflix would have far-reaching implications for the media industry, potentially triggering further consolidation and strategic alliances. The combined entity would possess significant bargaining power in negotiations with content creators, distributors, and advertisers globally. The deal also raises questions about the future of traditional media companies and their ability to compete with the increasingly dominant streaming giants. The outcome of the shareholder vote in 2026 will be closely watched by industry observers worldwide.