Netflix has agreed to purchase Warner Bros. Discovery’s streaming and studio division using cash only, outbidding competitor Paramount in a move that could have far-reaching implications for the entertainment industry. The announcement was made by Netflix on the same day as its fourth-quarter earnings report. The deal, valued at $72 billion in US equity, translates to $27.75 per share. Netflix expressed the intention to expedite the shareholder vote process and ensure a clear value proposition at the transaction’s conclusion.
The battle between Netflix and Paramount over the acquisition has been ongoing for months. While Netflix is primarily interested in acquiring Warner Bros.’ studio business and streaming content, Paramount aims to acquire the entire company, which includes assets like CNN and the Discovery+ streaming platform.
Geetha Ranganathan, a senior media analyst at Bloomberg Intelligence, raised questions about the necessity of the deal for Netflix, suggesting it may be more crucial for Paramount Skydance under new CEO David Ellison. However, Netflix’s slowed subscriber growth has raised concerns among investors, prompting the company to focus on increasing user engagement to enhance its market position.
The acquisition of Warner Bros.’ extensive content library, featuring popular franchises like Harry Potter, iconic TV shows such as Friends and Game of Thrones, and classic films like Citizen Kane and Casablanca, is expected to significantly boost Netflix’s business operations, according to Ranganathan.
The timeline leading up to the deal involved Warner Bros. Discovery exploring a potential sale in October 2025, with Paramount’s initial bid rejected. Netflix then expressed interest in acquiring Warner Bros., followed by a commitment to release Warner Bros. films in theaters in November 2025.
In December 2025, Paramount increased its proposed breakup fee, and shortly after, Netflix announced the $72 billion acquisition of Warner Bros. Discovery’s studio and streaming division. The deal faced criticism from various quarters, including U.S. Congress members and Hollywood unions, citing concerns about antitrust issues, job losses, and industry consolidation.
In January 2026, Warner Bros. Discovery rejected Paramount’s hostile bid, urging shareholders to support the Netflix deal. The companies launched a joint marketing campaign to promote their partnership, emphasizing the risks associated with Paramount’s offer.
Looking ahead, with Netflix committing to an all-cash deal, a shareholder vote is expected soon, potentially serving as a final deadline for Paramount. Regulatory approval remains a key uncertainty, with potential challenges related to antitrust implications and strategic decisions regarding Warner Bros.’ film studio and HBO assets.
The evolving situation underscores the complex dynamics at play in the entertainment industry, with significant implications for the future of streaming and content distribution.
