Netflix has opted to pay for Warner Bros. Discovery’s streaming and studio division with cash exclusively to outmaneuver Paramount in a strategic move that could reshape the global entertainment landscape. The announcement came on the same day as Netflix’s fourth-quarter earnings report. The deal, valued at $72 billion in US equity, equates to $27.75 per share. According to a letter addressed to investors by Netflix, this move accelerates the timeline for a WBD shareholder vote and provides greater certainty regarding the value to be delivered upon closure.
The battle between Netflix and Paramount over the acquisition has been ongoing for several months. While Netflix aims to secure the studio business and streaming library of the company, Paramount seeks to acquire the entirety of Warner Bros. Discovery, which includes assets like CNN and the Discovery+ streaming platform.
Geetha Ranganathan, a senior media analyst at Bloomberg Intelligence, raised questions about whether the deal is a necessity or a luxury for Netflix. Ranganathan highlighted the deal’s critical importance for Paramount Skydance under the leadership of new CEO David Ellison, contrasting it with Netflix, whose growth in subscribers has slowed, prompting concerns among investors. Netflix is now focusing on engagement to enhance its value.
The acquisition of Warner Bros.’ extensive content library, featuring popular franchises such as Harry Potter, iconic TV shows like Friends and Game of Thrones, and classic films like Citizen Kane and Casablanca, is expected to significantly expand Netflix’s business, according to Ranganathan.
The article traces the timeline of events leading up to the current scenario. In October 2025, Warner Bros. Discovery signaled its exploration of a sale following its decision to split into two separate entities. Initial bids from Paramount were rejected, coinciding with Netflix’s financial challenges due to a dispute with Brazilian tax authorities.
In November 2025, Netflix made a significant move by committing to release Warner Bros.’ films in theaters, deviating from its usual streaming-focused approach. Paramount then increased its proposed breakup fee before Netflix ultimately agreed to acquire Warner Bros. for $72 billion.
The article also covers the backlash and criticism faced by the deal from various quarters, including U.S. Congress members and Hollywood unions. Paramount’s subsequent hostile bid, backed by notable figures like Jared Kushner and Larry Ellison, added further complexity to the situation.
As of January 2026, Warner Bros. Discovery rejected Paramount’s hostile bid, advocating for the Netflix deal, citing risks associated with Paramount’s leveraged offer. The article concludes by speculating on the upcoming shareholder vote on the Netflix-Warner Bros. deal and the potential regulatory and strategic challenges Netflix may encounter following the acquisition.