The battle for Warner Bros Discovery’s (WBD) streaming content is heating up as Netflix mulls all-cash offer.
Reports are emerging that Netflix (NFLX) is considering changing its bid for WBD. They might make it an all-cash offer to get the $83 billion deal over the line.
Netflix has previously tabled an 85%/15% cash/stock split deal. WBD investors seem reluctant to accept this given the sharp fall in Netflix’ share price since the summer.
Netflix stock peaked at a record close to $134 in July last year but has since lost 33%.
Bidding battle
Revising its offer would presumably come in response to counter offers for WBD pitched by Paramount Skydance. The media business is run by movie producer David Ellison, his dad Larry, the billionaire Oracle (ORCL) co-founder, and RedBird Capital. This fierce battle for content rights and collaboration with WBD is heating up strategically.
Paramount Skydance recently launched a hostile bid for the entire WBD company.
Under the original agreement announced in December, WBD shareholders would receive $23.25 in cash and $4.50 in Netflix shares for each WBD share they own.
The revised all-cash structure would potentially simplify the transaction and possibly address some regulatory concerns.
Content is crucial
The acquisition represents a significant consolidation move in the increasingly competitive streaming landscape as the battle for WBD streaming content heats up. WBD’s content library includes hit movie franchises such as DC (Batman), Harry Potter, and Lord of the Rings.
Additionally, streaming platforms Max (formerly HBO Max) and Discovery+, and TV channels in sports and entertainment.
Things have turned sour for Netflix in recent months. The battle for viewers is squeezing the deluge of global streaming services.
In its favour, Netflix has already won support from WBD’s board. The streaming giant is also the biggest beast in the space. Revenues and subscriber numbers have continued to rise in recent quarters. Net profits have, however, remained typically bumpy. This is due to significant cash thrown at content creation and marketing.
Netflix is expected to see significantly increased revenue and earnings per share for Q4 2025 when it reports on 21 Jan. Koyfin consensus is pitched at EPS of $0.55 (+28%) on $11.97 billion revenue, 16.8% higher than in the same period a year ago. This outlook is being watched closely as the battle for WBD streaming content heats up with Netflix potentially making an all-cash offer.
You might Also like:
Could 2026 be Apple’s AI make or break year?
Frontier Developments ups guidance after ‘excellent’ start
Is Tesla now a binary bet on analysts versus the market?
Disclaimer: This content is for information only and is not investment advice. Always do your own research before investing. Click here to see full disclaimer.
