Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - Netflix is currently doubling down on its massive bid to acquire Warner Bros Discovery. The streaming giant is considering an all-cash offer to speed up the process.
Key Takeaways
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Netflix pivots to all-cash to avoid the impact of stock price volatility.
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The new strategy aims to outrun Paramount’s aggressive counter-bids.
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Strong credit ratings allow Netflix to tap into even more bank financing.
This strategic shift comes after Netflix Inc. shares lost a quarter of their value. The original deal structure became less attractive for shareholders due to this slump.
According to a report by Bloomberg, the initial offer included 23.25 dollars in cash. The rest was supposed to be paid in common stock.
Netflix has secured a massive 59 billion dollar war chest from Wall Street banks. This funding comes in the form of a record-breaking bridge loan.
Bidding Wars and Political Hurdles
The deal faces stiff competition from Paramount Skydance which is trying to block it. David Ellison and Oracle Corp. co-founder Larry Ellison have launched a rival bid.
Paramount has even filed a lawsuit regarding the valuation of the transaction. They plan to appoint new directors to stop the Netflix merger.
Politicians and major institutional investors are currently divided on the acquisition. The deal is expected to take several months to reach a final close.
Senior credit analyst Stephen Flynn from Bloomberg Intelligence believes Netflix remains financially healthy. He noted that the company’s net leverage is still very modest.
Warner Bros shares rose 1.6 percent following the news of the cash offer. Meanwhile, Netflix stock ended the day with a slight 1 percent gain.
Reference:
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Bloomberg, Netflix Weighs Amending Warner Bros. Bid to Make It All Cash. Accessed on January 14, 2026
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