Netflix has made a strategic move by deciding to acquire Warner Bros. Discovery’s streaming and studio division using cash, outbidding Paramount in a high-stakes competition that has been unfolding for months. This deal, valued at $72 billion in the US, equating to $27.75 per share, was announced by Netflix coinciding with its fourth-quarter earnings report. The aim is to expedite the process for a shareholder vote at Warner Bros. Discovery and provide clarity on the value to be delivered upon closing.
The battle between Netflix and Paramount has revolved around different objectives. While Netflix is primarily interested in acquiring Warner Bros.’ studio business and streaming inventory, Paramount has sought to purchase the entire Warner Bros. Discovery entity, encompassing assets like CNN and the Discovery+ streaming platform.
Geetha Ranganathan, a senior media analyst at Bloomberg Intelligence, has raised questions about the necessity of the deal for Netflix. While Paramount Skydance views this acquisition as crucial under new CEO David Ellison, Netflix is facing concerns over slowing subscriber growth, prompting a shift towards enhancing engagement to drive its market value.
The acquisition of Warner Bros.’ extensive content library, featuring iconic franchises such as Harry Potter, popular TV shows like Friends and The Sopranos, and classic films like Citizen Kane and Casablanca, is seen as a significant opportunity for Netflix to expand its business significantly.
The journey leading to this moment began in October 2025 when Warner Bros. Discovery first signaled its intent to explore a sale following its decision to split into two separate entities. Subsequent events, including rejected bids and strategic maneuvers by both Netflix and Paramount, have culminated in a contentious battle for control of Warner Bros. Discovery.
As of January 2026, Warner Bros. Discovery has rejected Paramount’s hostile bid and actively endorsed the Netflix deal, emphasizing the risks associated with Paramount’s leveraged offer. The upcoming shareholder vote on the Netflix deal will serve as a critical juncture, determining the fate of this high-profile acquisition and potentially reshaping the landscape of the entertainment industry.