Netflix and Warner Bros Discovery (WBD) have altered the terms of their acquisition agreement, moving to an all-cash transaction to expedite the process. The deal, valued at $27.75 per WBD share, was unanimously approved by the boards of both companies.
This revised structure is designed to streamline the transaction, with financing provided through a combination of cash reserves, available credit lines, and committed financing, according to a WBD statement. While the deal has been approved, it is still subject to regulatory approvals, the completion of Discovery Global’s separation from Warner Bros, and approval from WBD stockholders. The separation process is expected to be completed within six to nine months, with the transaction slated to close in 12 to 18 months from the original merger announcement in November 2025.
Revised Deal Provides Greater Value Certainty
The new all-cash deal aims to provide enhanced financial certainty and a quicker path to stockholder value. WBD stockholders will also benefit from the value generated by shares of Discovery Global once the separation is finalized. A proxy statement has been filed with the SEC, and stockholders are expected to vote on the deal by April 2026.
WBD CEO David Zaslav highlighted that the deal brings the two companies closer to joining forces, ensuring a larger audience for the entertainment they create. Netflix co-CEO Ted Sarandos emphasized that the all-cash structure would deliver broader choice and greater value to global audiences.
Greg Peters, Netflix’s other co-CEO, expressed confidence that the amendment underscores the superior stockholder value of the deal, which is “fundamentally pro-consumer, pro-innovation, pro-creator and pro-growth.” He also noted the company’s commitment to maintaining a healthy balance sheet and strong credit ratings despite the transaction.
Samuel A Di Piazza Jr, chair of WBD’s board, emphasized the certainty that the all-cash structure brings to the deal, noting the opportunity for stockholders to participate in the strategic plans for Discovery Global’s brands and global reach.
Following the completion of the transaction, Warner Bros and Discovery Global will be separated into two publicly traded companies, with WBD aiming for a finalization of the acquisition before the end of 2026.
