Netflix has agreed to pay for Warner Bros. Discovery’s streaming and studio division entirely in cash, outbidding its competitor Paramount. This development marks a significant shift in the global entertainment landscape. The announcement came on the same day as Netflix’s fourth-quarter earnings report. The deal, valued at $72 billion US, translates to $27.75 US per share. Netflix expressed confidence in the transaction, stating that it accelerates the timeline for a shareholder vote and ensures the delivery of value at closing.
The battle between Netflix and Paramount for the acquisition has been ongoing for months. While Netflix aims to secure Warner Bros.’ studio operations and streaming content, Paramount is interested in acquiring the entire entity, which includes assets like CNN and Discovery+. Geetha Ranganathan, a senior media analyst at Bloomberg Intelligence, raised questions about the necessity of the deal for Netflix. She highlighted the strategic importance of the acquisition for Paramount Skydance, under the leadership of new CEO David Ellison.
The deal is viewed as crucial for Paramount Skydance, particularly in light of Netflix’s recent slowdown in subscriber growth. To sustain its value, Netflix is now focusing on enhancing user engagement. Acquiring Warner Bros.’ extensive library, featuring popular franchises such as “Harry Potter,” iconic TV shows like “Friends,” “The Sopranos,” and “Game of Thrones,” as well as classic films like “Citizen Kane” and “Casablanca,” could significantly elevate Netflix’s business, according to Ranganathan.
The timeline leading up to this development began in October 2025 when Warner Bros. Discovery announced its intention to explore a sale. Initial bids, including Paramount’s offer of nearly $24 US per share, were reportedly rebuffed. As the negotiations progressed, Netflix emerged as a potential bidder for Warner Bros.’ streaming and studio division. In November 2025, Netflix pledged to continue releasing Warner Bros.’ films in theaters, signaling a shift in its traditional streaming-centric approach.
In December 2025, amidst escalating bids and criticisms, Netflix finalized a $72 billion deal to acquire Warner Bros., prompting mixed reactions from various stakeholders. Paramount countered with a hostile bid, supported by external investment funds and notable personalities like Jared Kushner and Larry Ellison. Despite the opposition, Warner Bros. Discovery rejected Paramount’s bid in January 2026, advocating for shareholders to approve the deal with Netflix.
Looking ahead, a shareholder vote will determine the fate of the acquisition, with Paramount facing a crucial deadline. Uncertainties regarding regulatory approvals and potential antitrust issues loom over the deal, with implications for Netflix’s future strategy regarding Warner Bros.’ film studio and HBO. The outcome of these deliberations will shape the dynamics of the entertainment industry moving forward.