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Netflix has updated its offer for Warner Bros Discovery’s streaming and film business and will pay completely in cash – as it looks to fend off rival Paramount Skydance in pursuit of the Hollywood studio.

The move amends the streaming giant’s original offer, which would have funded the transaction using a mix of cash and shares.

In a joint announcement, Netflix and Warner Bros said the change would provide more “certainty” to shareholders and enable them to vote the deal through more quickly.

The update comes as Paramount Skydance presses on with its rival bid to buy Warner Bros, despite being repeatedly rebuffed.

Netflix’s plan would give the streaming giant ownership of Warner Bros’ rich library, which includes franchises such as Harry Potter and Game of Thrones, as well as streaming service HBO Max.

It has offered to pay $27.75 per share for the streaming and film businesses, or roughly $72bn (£54bn), a price that remains unchanged.

The transaction, including debt, values the enterprise at roughly $82bn (£61bn).

Warner Bros shareholders will also receive shares in the other parts of Warner Bros, including news channel CNN, which are set to be spun off as a separate, publicly traded company.

Paramount, which is backed by tech billionaire Larry Ellison and his family, has argued that those networks are worth far less than Warner Bros is hoping, meaning its $30-per-share, or $108bn (£80bn) overall, offer for the company is superior.

It has kept up its campaign to buy the firm, recently suing Warner Bros to compel the company to release the financial details of the Netflix offer.

The leadership at Warner Bros has stuck by Netflix for now, questioning how Paramount is putting together the money to finance its deal.

“Our amended agreement with Netflix is a testament to the board’s unrelenting focus on representing and advancing our stockholders’ interests,” said Samuel Di Piazza, Jr, chair of the Warner Bros Discovery board of directors.

He said switching to an all-cash offer meant the board could “deliver the incredible value of our combination with Netflix at even greater levels of certainty”, while allowing Warner Bros shareholders to benefit from the spinoff of its other brands.

Critics have rounded on both merger proposals, saying they would consolidate too much power in the hands of one company.

Since the deal was announced last month, Netflix shares have also fallen more than 10%, an indication of investor disquiet about the plan.

They dropped again in after-hours trading on Tuesday, despite the firm posting a strong performance for the last three months of 2025.

Netflix said revenue in the quarter jumped 18% from a year earlier to more than $12bn (£9bn), including more than $1.5bn (£1.1bn) from advertising. Profits surged nearly 30% to $2.4bn (£1.8bn).

The firm said it now has more than 325 million paying subscribers globally, up more than 7% from a year ago.

In a letter to shareholders, the company defended the deal, saying Netflix and Warner Bros had “highly complementary” businesses. They said the purchase would enrich their selection of films and television and allow them to offer more personalised streaming operations.

The firm also emphasised its plans to invest in production in the US.

“Together we’ll be able to offer more opportunities to creators and strengthen the entire entertainment industry,” the company said.