Netflix Wins Warner Bros. Discovery in $72B Cash Deal, Paramount Sidelined
In a move that could dramatically reshape the entertainment industry, Warner Bros. Discovery has agreed to sell its studios and streaming business to Netflix in an all-cash deal valued at roughly $72 billion. The agreement, announced Tuesday, marks a major turning point for both companies and sets up what could become one of the biggest media acquisitions in recent history.
Under the terms of the deal, Netflix will pay $27.75 per share for Warner Bros. Discovery’s studios and streaming assets. The agreement replaces Netflix’s earlier cash-and-stock proposal and clears a major hurdle by offering shareholders a simpler, cleaner transaction just as rival bidder Paramount Skydance continues to press its own hostile takeover effort.
The revised offer is expected to accelerate the path toward a shareholder vote, which could now take place as early as April, assuming no major obstacles emerge.
Why Netflix Changed Its Offer
Netflix’s decision to move to an all-cash bid was widely seen as a strategic response to growing criticism from Paramount Skydance, which has repeatedly argued that its nearly $78 billion offer was superior because it avoided stock components and complex deal structures.
By switching to a cash-only deal, Netflix effectively neutralized one of Paramount’s strongest arguments. It also addressed concerns from investors who prefer certainty over stock-based offers, particularly in a volatile market where valuations can shift quickly.
For Warner Bros. Discovery’s board, the amended proposal likely offered a clearer and faster route forward, one that reduces execution risk while giving shareholders immediate value.
What’s Being Sold — and What’s Not
The deal focuses specifically on Warner Bros. Discovery’s studios and streaming operations. That includes its film and television production arms and its flagship streaming platforms, which have struggled to reach consistent profitability amid intense competition.
Meanwhile, the company’s cable networks, long considered both a cash generator and a potential drag, will be spun off into a separate company called Discovery Global. This structure allows shareholders to retain exposure to the traditional cable business while Netflix takes over the growth-oriented studios and streaming side.
To support the deal, Warner Bros. Discovery released new financial disclosures detailing the performance and projections of the cable networks that will remain behind. These disclosures were a key sticking point in the escalating dispute with Paramount Skydance.
The Paramount Factor
Paramount Skydance has spent months arguing that Warner Bros. Discovery failed to provide enough transparency about the cable business, making it difficult for shareholders to fairly compare competing offers.
That complaint became central to Paramount’s proxy fight and its lawsuit in Delaware, where it accused Warner Bros. Discovery of withholding critical financial information.
The newly released disclosures appear to be a direct response to those criticisms. By offering updated projections and valuation details for Discovery Global, Warner Bros. Discovery is signaling that it believes shareholders now have enough information to make an informed decision.
Whether this move weakens Paramount’s legal case remains to be seen, but it clearly changes the dynamics of the battle.
Why This Deal Matters for Netflix
For Netflix, acquiring Warner Bros. Discovery’s studios and streaming assets would be a transformative move.
The deal would instantly give Netflix access to one of the deepest libraries in Hollywood, along with a production machine that has powered blockbuster films, prestige television, and global franchises for decades. It would also allow Netflix to consolidate its position as the dominant force in streaming at a time when rivals are cutting costs, shrinking content budgets, or rethinking their strategies entirely.
Importantly, Netflix is paying cash a sign of confidence in its balance sheet and long-term outlook. It also suggests the company sees this acquisition as foundational rather than optional.
What It Means for Warner Bros. Discovery
For Warner Bros. Discovery, the agreement represents both an ending and a reset.
The company has spent years trying to balance debt reduction, streaming growth, and declining cable revenues. Despite aggressive cost-cutting and restructuring efforts, the pressure never fully eased. Selling the studios and streaming business allows Warner Bros. Discovery to unlock value while simplifying its corporate structure.
The newly formed Discovery Global will now focus entirely on cable networks, a business that still generates cash but faces long-term decline as viewers continue to shift toward streaming.
Some investors may welcome that clarity. Others may worry about the long-term prospects of a cable-only company. Either way, the split marks a clear line between old media and new.
What Happens Next
The deal is not yet final. Shareholders will need to vote, regulators will review the transaction, and Paramount Skydance is unlikely to walk away quietly.
Still, the momentum now appears to favor Netflix. By removing stock from the equation and increasing transparency around the cable spinoff, Warner Bros. Discovery has made it harder for rival bidders to argue that shareholders are being shortchanged.
If approved, the transaction would rank among the most significant media deals of the decade, one that could permanently alter how movies and television are made, distributed, and consumed.
A Defining Moment for the Industry
At its core, this deal reflects a broader truth about the media business: scale matters more than ever.
As streaming becomes the primary way audiences consume content, companies with the deepest libraries, strongest technology, and global reach are best positioned to survive. Netflix, once an outsider disrupting Hollywood, is now powerful enough to absorb one of its most storied institutions.
For Warner Bros. Discovery, the decision to sell may be bittersweet, but it also brings closure after years of financial strain and strategic uncertainty.
And for the rest of the industry, the message is clear: consolidation is far from over, and fewer, bigger players will write the next chapter of entertainment.
Whether this deal ultimately reshapes Hollywood for the better remains to be seen. But one thing is certain: the Netflix-Warner Bros. Discovery agreement marks a turning point that will be felt for years to come.
