Motley Fool Money Will Netflix Go All-Cash for WBD?
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Jan 16, 2026 
Lou Whiteman, an investment analyst known for his deep dives into media and tech, and Jon Quast, a regular panelist focusing on market insights, explore the intricate dynamics of Netflix possibly going all-cash for Warner Bros. Discovery. They discuss the potential risks involved in this bold move and compare it to past acquisitions like Disney-Fox. The conversation also touches on Tesla's shift to subscription pricing, Google’s latest AI advancements, and a critical look at various companies under scrutiny for their value and growth potential.
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Board Preference For A Known Partner
- Warner Bros. Discovery's board prefers Netflix because Netflix preserves value for shareholders via a cable spinoff and is a known, trusted partner.
- Paramount's higher all-in bid may fail due to execution risk and regulatory hurdles in Europe.
Cable-Spinoff Valuation Doubts
- Early trading of Versant, Comcast's spinoff, plunged from $45 to $33 showing cable assets may be worth far less than assumed.
- Paramount even argues the equity could be worthless, complicating valuation for any WBD deal.
Netflix Has Execution Edge But Debt Risk
- Netflix can likely close a deal faster and more reliably than Paramount because it has deeper capital access and political heft.
- But a Netflix acquisition could saddle Netflix with large debt and reduce strategic flexibility.