Netflix considers switching Warner Bros. bid to an all-cash offer.

Netflix is discussing revised terms for its proposed acquisition of Warner Bros. Discovery, including an all-cash offer, after lining up substantial financing and amid a competing bid from Paramount Skydance.

Netflix is working on revised terms for its proposed acquisition of Warner Bros. Discovery and has discussed making an all-cash offer for the studios and streaming businesses. The company originally offered a mix of cash and stock and has arranged large financing to support the deal. Competition from Paramount Skydance and divided investor views have complicated the sale. Negotiations and legal activity around the transaction are ongoing. Key developments: - The article reports Netflix has discussed converting its bid into an all-cash offer for Warner Bros. Discovery's studios and streaming units. - Under the original agreement, Warner Bros. shareholders were to receive $23.25 in cash and $4.50 in Netflix common stock, with adjustments if Netflix shares fall below $97.91. - Since the takeover effort began in October, the article reports Netflix shares have fallen about 25% and traded as low as $89.07; it also notes Netflix shares rose about 1% to $90.32 after the discussions were reported. - Netflix arranged about $59 billion of financing in the form of a bridge loan and has refinanced roughly $25 billion of that with longer-term debt, the article says. - The article cites a Bloomberg Intelligence analyst, Stephen Flynn, saying Netflix has a strong balance sheet and capacity to borrow more while maintaining robust credit ratings. - Paramount Skydance has mounted a rival effort: the article reports a tender offer for Warner shares, a $40.4 billion funding guarantee from David and Larry Ellison, a lawsuit seeking more deal details, and plans to nominate directors to the Warner board. Summary: The possible switch to an all-cash bid reflects Netflix's effort to speed a sale that could take months and that faces investor division and legal and corporate challenges from a rival bidder. Undetermined at this time.