Netflix switches to all-cash $83B Warner Bros bid, won’t lose to Paramount

Netflix just switched its $83 billion Warner Bros bid entirely to cash, signaling serious intent to block Paramount from winning the streaming giant. The move, announced last week, eliminates any ambiguity. Netflix co-CEO Greg Peters went on offense yesterday, bluntly dismissing Paramount Skydance’s rival offer as something that “doesn’t pass the sniff test.”

Netflix Powers Up With All-Cash Move

Netflix increased its bridge loan commitment by $8.2 billion, bringing total financing to $67.2 billion. The streaming company now offers $27.75 per share entirely in cash instead of the original mix of cash and stock. This structural change removes financing uncertainty that plagued earlier versions. Ted Sarandos and Greg Peters, Netflix’s co-CEOs, defended the aggressive move as essential for competing in a changed media landscape.

The all-cash offer signals confidence and eliminates delays. Netflix suspended its share buyback program to fund the deal, demonstrating commitment. Co-CEO Peters explained they hadn’t initially planned to pursue Warner Bros, but “when we got into the hood, there were several things we saw that were just really exciting.” Access to 100 years of Warner Bros content, theatrical distribution, and the HBO prestige brand transformed the calculus entirely.

Paramount’s Bid Faces Skepticism and Financing Doubts

Netflix co-CEO Greg Peters attacked Paramount Skydance’s $108 billion offer, claiming it faces impossible debt leverage. Peters stated: “Without Larry Ellison independently financing this thing, there’s no chance in hell Paramount would ever be able to pull this off.” Paramount already carries heavy debt, making the company’s ability to fund an even bigger bid questionable. Peters later said the bid “doesn’t pass the sniff test,” echoing Warner Bros board members’ positions.

David Ellison, Paramount Skydance’s CEO, launched a hostile bid and asked shareholders to tender shares. However, as of January 21, only 168.5 million of 2.45 billion shares had been tendered, a “very small” number according to Peters. Larry Ellison, the Oracle billionaire and David’s father, committed to personally backstop financing, but that doesn’t change the underlying leverage mathematics that concerned Netflix executives and the board alike.

Strategic Assets at Stake in Hollywood’s Biggest Battle

“When we got into the hood, there were several things we saw that were just really exciting. We have often in our Netflix history debated building a theatrical business, but we were busy investing in other areas, and it never became our priority. But now with Warner Bros, they bring a mature, well-run theatrical business.”

— Greg Peters, Netflix Co-CEO

Investor Reaction and Regulatory Scrutiny Intensifying

Netflix stock dropped 15% since the original December 5 offer, with investors questioning long-term returns. The company delivered a tepid revenue beat despite strong content like the final season of “Stranger Things.” Wall Street remains unconvinced about deal payoff timing. Paramount shares also declined sharply as the bidding war intensified. FCC Chair noted “legitimate competition concerns,” though the FCC has no regulatory authority over media mergers. European antitrust regulators will scrutinize both Netflix and Paramount bids simultaneously, potentially blocking either deal.

Netflix executives argue the acquisition is “pro-consumer” and “pro-worker,” expanding creative opportunities and content distribution. Ted Sarandos stated the deal would provide access to “100 years of Warner Bros deep content and IP for development and distribution in more effective ways that will benefit consumers and the industry.” The shareholder vote, expected in April 2026, will determine if Netflix succeeds before Paramount’s February 20 tender deadline expires.

What Happens If Netflix Wins This Unprecedented Merger?

Netflix would control one of entertainment’s vastest content libraries, gaining theatrical distribution expertise and the HBO brand halo. The company reverses years of philosophy by embracing theatrical releases rather than dismissing cinema as outdated. Game of Thrones, Harry Potter, and decades of Warner Bros franchises would integrate into Netflix’s global streaming platform. The combined production capability dwarfs competitors, consolidating streaming power dramatically. However, regulatory approval remains uncertain in Europe and the U.S., and investors worry about the massive financial burden and integration complexity ahead.

Jessica Morrison

Jessica Morrison is a seasoned entertainment writer with over a decade of experience covering television, film, and pop culture. After earning a degree in journalism from New York University, she worked as a freelance writer for various entertainment magazines before joining red94.net. Her expertise lies in analyzing television series, from groundbreaking dramas to light-hearted comedies, and she often provides in-depth reviews and industry insights. Outside of writing, Jessica is an avid film buff and enjoys discovering new indie movies at local festivals.