Paramount’s Takeover Math Stops Mathin After Netflix Turns WBD Into a Cash-Only Fight

You know what they say: when the going gets tough… switch to all cash and dare the other guy to blink.

And what do you know? That’s exactly what Netflix just did to Warner Bros… and, more importantly, to Paramount.

After flirting with a cute little “cash + Netflix stock” situation, Netflix has officially trashed that plan and showed up with a briefcase full of money. The revised offer? $27.75 per WBD share, all cash, for Warner Bros.’ movie studio and flagship streaming property, HBO. Meaning this offer involves no equity swaps or hoping Netflix stock bails you out later. Just hard dollars, right now.

Why the sudden change of heart? Because Paramount's top dogs (cough: David and his sugar-daddy Larry Ellison) have been lurking around WBD headquarters like Joe Goldberg from “You”… and they’ve been loudly arguing that their bid is superior because it’s all cash. Netflix basically heard that and said, “Cool story. Watch this.”

Originally, Netflix’s mixed offer gave Paramount an opening to play activist menace. Now? That door is shut, locked, and bolted from the inside. Zaslav wasted zero time pushing the deal forward, teeing up a shareholder vote once the SEC is done, probably this spring. Translation: Let’s wrap this up before Paramount flips another table.

(Source: Yahoo Finance)

And make no mistake, Paramount is still flipping tables. CEO David Ellison has already threatened a proxy fight, sued for more valuation details, and argued that WBD’s cable channels (CNN, TNT, etc.) are essentially no more than corporate dead weight. The Delaware court wasn’t impressed and declined to fast-track the case, which feels… not great for Team Paramount.

WBD’s board, meanwhile, is firmly Team Netflix. They’ve unanimously backed the amended deal again and are sticking to the line that splitting the company (streaming and studios to Netflix, cable leftovers spun into a new public zombie called Discovery Global) leaves shareholders better off. Paramount disagrees. Loudly. Repeatedly. Possibly while pacing barefoot in a boardroom.

And you couldn’t script this better. This whole media knife fight is happening the same day Netflix reports earnings, turning a routine market close into must-see TV.

So what happens next? If shareholders sign off, Netflix gets HBO, Warner Bros., and a content library so deep it’ll need scuba gear. WBD shareholders get certainty. Paramount gets… a proxy fight and a very awkward press tour. And as for the Ellisons… chin up, David. Your dad is still one of the richest people on the planet. Worst case, he can probably write you a check big enough to at least buy Tubi.

At the time of publishing this article, Stocks.News holds positions in Netflix as mentioned in the article.