Netflix is reportedly preparing an all-cash offer to acquire Warner Bros Discovery’s film studios and streaming operations, signaling a shift from its earlier cash-and-stock proposal. The move is aimed at accelerating a transaction expected to take several months to complete and comes amid a competitive bidding process with Paramount Skydance.

Netflix’s initial proposal, valued at $82.7 billion, focused exclusively on Warner Bros Discovery’s film and streaming assets. Paramount, on the other hand, has offered $108.4 billion for the entire company, including cable television assets, backed by additional equity. Despite Paramount’s revised bid, Warner Bros Discovery’s board has shown a preference for Netflix’s offer, citing concerns over the debt financing and execution risks associated with Paramount’s plan.

Paramount has challenged the process legally, seeking greater disclosure on Netflix’s proposal and indicating plans to nominate directors to Warner Bros Discovery’s board. The company argues that its all-cash bid offers higher certainty and fewer regulatory hurdles compared with other options.

Following reports of Netflix’s intended cash-only offer, shares of both Netflix and Warner Bros Discovery rose, while Paramount’s stock remained largely unchanged. Neither Netflix nor Warner Bros Discovery has officially commented on the developments.

The potential acquisition is drawing political attention in the U.S., with lawmakers scrutinising further consolidation in the media and entertainment sector. The outcome is being closely watched, reflecting the broader challenges faced by legacy studios as streaming platforms reshape audience habits and the competitive landscape.