Netflix Goes All-Cash, Paramount Extends Deadline

Well, this bidding war just got even messier.

Last week, I posted an update on the Netflix-Warner Bros. acquisition saga, noting that Paramount had launched a lawsuit and proxy fight after Warner Bros. Discovery officially rejected its hostile bid for the second time.

Turns out, both sides had more moves to make.

Netflix Shifts to All-Cash (January 20, 2026)

This week: Netflix officially switched to an all-cash offer for Warner Bros. Discovery's studios and streaming businesses at $27.75 per share without increasing the overall $82.7 billion price.

This is a major shift from Netflix's original cash-and-stock deal (which was $23.25 cash + $4.50 in Netflix stock). Warner Bros. Discovery's board continues to back the Netflix deal, saying the all-cash structure provides "greater certainty of value" and will "accelerate the stockholder vote."

Why the change? Netflix stock has been under pressure, and the move is designed to:

Expedite the sale (which will take months to close)
Address investor concerns about Netflix's falling share price affecting the deal value
Counter Paramount's all-cash offer

Paramount Extends Deadline (But Won't Raise Price)

Today: Paramount is extending its tender offer deadline beyond the original January 21, 2026 deadline, but is NOT raising its $30/share price, according to sources.

David Ellison is reportedly "not taking David Zaslav's bait" to sweeten the offer. Paramount is pressing ahead with its lawsuit and proxy fight despite the deadline extension.

Netflix Q4 Earnings: Strong Results, Stock Drops

Today: Netflix reported Q4 2025 earnings that beat expectations:

Revenue: $12.05 billion (beat estimates of $11.97 billion)
Subscribers: Crossed **325 million paid memberships** during Q4
Ad revenue: Hit $1.5 billion

BUT: Netflix stock dropped 3-5% in after-hours trading despite the strong results, with the Warner Bros. deal uncertainty weighing on investor sentiment.

Netflix co-CEOs found themselves "on the backfoot" defending the Warner Bros. acquisition during the earnings call.

Netflix also announced it's **pausing share buybacks** to accumulate cash for the Warner Bros. deal.

The Judge Ruled Against Paramount (January 15)

Last week, a Delaware judge rejected Paramount's motion to expedite its lawsuit, ruling that Paramount hasn't identified "irreparable harm" to itself as a Warner Bros. shareholder.

Warner Bros. called the lawsuit "yet another unserious attempt to distract and the Judge saw right through it."

The Bankers Win No Matter What

Fun fact: JPMorgan and Allen & Co will collect **$180 million in M&A fees** regardless of whether Netflix or Paramount wins.

What This All Means

Here's what's clear: Netflix reported record subscriber numbers (325 million) and beat revenue estimates, yet the stock dropped 3-5% in after-hours trading. Why? Because investors are nervous about the Warner Bros. deal—the debt load, the integration challenges, the regulatory uncertainty, and the fact that Paramount isn't backing down.

Meanwhile, JPMorgan and Allen & Co are guaranteed to collect $180 million in M&A fees regardless of who wins. The bankers always win.

And consumers? We're still getting fewer choices and higher prices, no matter which company ends up owning Batman.

Stay tuned for more, cause there's bound to be more to this story...

Got thoughts on this mess? Find me on Mastodon at @ppb1701@ppb.social