Netflix WBD Acquisition Bid Turns All-Cash as Revenue Growth Stalls

It's a high-stakes gamble with a massive pile of cash. Streaming giant Netflix is doubling down on its bid to acquire Warner Brothers Discovery (WBD) by shifting to an all-cash offer. But the market isn't cheering yet—shares tumbled on Tuesday as the company signaled that years of blistering revenue growth might be coming to a halt.

The Strategy Behind the Netflix WBD Acquisition

According to reports from AFP, Netflix revised its takeover terms on Tuesday to provide WBD shareholders with greater certainty. The all-cash deal is designed to bypass the volatility of stock swaps and fast-track a shareholder vote, which could happen as early as April 2026. The WBD board has already given the nod, unanimously recommending the deal.

Netflix Co-CEO Ted Sarandos stated that the acquisition would "significantly expand US production capacity and investment in original programming." However, the deal doesn't include everything. Legacy TV properties like CNN and Discovery will be spun off into a new publicly traded entity called "Global Networks."

Wall Street Reacts: Revenue Stalls Despite $2.4B Profit

The M&A excitement was overshadowed by a sobering earnings report. Netflix shares slid more than 5% to $82.85 in after-hours trading. While the company posted a solid $2.4 billion profit on $12 billion in revenue for the final quarter of 2025, its forecast for the current quarter is essentially flat at $12.1 billion. Investors fear that Netflix's organic growth engine is losing steam.

Paramount Skydance's Hostile Opposition

The road to the finish line isn't clear of obstacles. Paramount Skydance, led by David Ellison, has filed a lawsuit against WBD to force more transparency for shareholders. Ellison has vowed to solicit proxies against the Netflix agreement if a special meeting is called, keeping the hostile bid for the CNN-parent company alive.