Netflix shares gained 0.7% Tuesday morning, outperforming a weak Nasdaq 100, after the streaming giant and Warner Bros. Discovery amended their merger agreement to an all-cash structure. The revised deal maintains the $27.75 per share valuation but eliminates the stock component, offering WBD shareholders greater certainty of value amid competing acquisition bids.

The all-cash amendment accelerates the timeline for a WBD stockholder vote, now expected by April 2026. Netflix co-CEO Greg Peters stated the structure provides financial certainty while preserving the company's solid investment-grade ratings. The transaction will be financed through cash on hand, credit facilities, and committed financing, leveraging Netflix's strong cash flow generation.

Before closing, WBD will separate into two publicly traded companies—Warner Bros. and Discovery Global—with shareholders receiving both cash and Discovery shares. The deal remains subject to regulatory and shareholder approval, with an expected closing 12-18 months from the original agreement date. This move simplifies the acquisition structure and may expedite regulatory review.