Name: Faber Report: Netflix likely to make Warner Bros. deal all-cash, sources say
Uploaded: 2026-01-14T14:44:36+00:00
Duration: 342 s

Speakers

David Faber — Anchor, Squawk on the Street / Media Analyst

Carl

Summary

CNBC's David Faber reports that Netflix is likely to replace the stock portion of its Warner Bros. Discovery bid with all cash, meaning WBD shareholders would receive $27.75 per share in cash plus the eventual Global Networks stub. The all-cash structure is intended to accelerate the WBD shareholder vote to as soon as late February or early March, avoiding the additional financials and accounting required for a stock deal. Faber also discusses Paramount's efforts to challenge the Netflix bid, including a Delaware lawsuit, and notes the accelerated timeline pressures Paramount to improve its offer sooner.

Netflix is likely to move to an all-cash offer for Warner Bros. Discovery's studio and streaming assets.
WBD shareholders would receive $27.75 per share in cash plus the Global Networks stub.
The all-cash deal could accelerate the WBD shareholder vote to late February or early March.
WBD stock had fallen below the deal collar, reducing the deal value by about $0.30 per share.
Paramount is working to defeat the Netflix deal and is suing in Delaware.
The accelerated timeline could force Paramount to raise its bid sooner or meet WBD board objections.
Netflix stock has traded down since the deal was first reported, but Faber says the all-cash move is not a sign of fear.

Ideas

David Faber Anchor, Squawk on the Street / Media Analyst 0:17

Netflix all-cash bid accelerates vote, clarifies value.

David Faber reports that Netflix is likely to replace the stock portion of its Warner Bros. Discovery bid with all cash, meaning WBD shareholders would receive $27.75 per share in cash plus the eventual Global Networks stub. The main reason is to accelerate the WBD shareholder vote, which could now occur as soon as late February or early March rather than late spring or early summer, because an all-cash deal avoids the additional financials and accounting required for stock issuance. This clarifies the deal value after the stock had fallen below the collar and shortens the timeline for Paramount to challenge or improve its bid.

David Faber Anchor, Squawk on the Street / Media Analyst 0:17

All-cash pivot removes stock issuance overhang.

Netflix is likely to move quickly to an all-cash bid for WBD, eliminating the stock portion of the deal. This removes the need for additional financial statements and accounting work tied to issuing stock, making the transaction cleaner and accelerating the WBD shareholder vote. Netflix stock has traded down since the deal was first reported, but Faber says the all-cash move is not a sign of fear; it is an attempt to clarify the deal and let WBD shareholders decide.

David Faber Anchor, Squawk on the Street / Media Analyst 1:48

Paramount must raise bid sooner to win.

Paramount is working to defeat the Netflix deal, including suing in Delaware, but the accelerated shareholder vote means Paramount must come up with a superior offer or address WBD board objections much sooner than previously expected. The business judgment rule gives the WBD board latitude, and it remains unclear whether Paramount will raise its bid, so the timeline squeezing Paramount is the key event to monitor.

Faber Report: Netflix likely to make Warner Bros. deal all-cash, sources say

Summary

Ideas

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