Netflix stock gains as Warner Bros. deal moves to all-cash structure

Netflix (NASDAQ: NFLX) saw its stock rise by 0.7% on Tuesday morning, despite a broader decline in the Nasdaq 100, which dropped 1.8%.

The increase followed news that Netflix and Warner Bros. Discovery (NASDAQ: WBD) had revised their merger agreement to an all-cash transaction, News.Az reports, citing foreign media.

Under the amended deal, the valuation remains unchanged at $27.75 per WBD share, but the stock component has been removed. This change offers WBD shareholders more certainty regarding the value of their shares. The adjustment comes as Paramount-Skydance continues to pursue the acquisition of Warner Bros. Discovery.

The companies also noted that the all-cash structure will speed up the process for a WBD stockholder vote, which is now expected by April 2026. Warner Bros. Discovery has already filed its preliminary proxy statement with the SEC to facilitate this accelerated timeline.

"Our revised all-cash agreement demonstrates our commitment to the transaction with Warner Bros. and provides WBD stockholders with an accelerated process and the financial certainty of cash consideration, while maintaining our commitment to a healthy balance sheet and our solid investment grade ratings," said Greg Peters, co-CEO of Netflix.

The transaction will be financed through a combination of cash on hand, available credit facilities, and committed financing. Netflix emphasized that its strong cash flow generation supports the revised structure while preserving financial flexibility.

As previously announced, WBD will separate Warner Bros. and Discovery Global into two separate publicly traded companies before the Netflix acquisition closes. WBD stockholders will receive both the cash consideration and shares of Discovery Global following the separation.

News.Az