Netflix announced last Friday intention to acquire Warner Bros., HBO and its streaming business HBO Maxin a deal valued at $82.7 billion. But this deal is being disputed by Paramount, which announced on Monday that it is making a hostile bid to acquire Warner Bros. Discovery.
The Netflix deal involves the streaming giant acquiring film studio HBO and the streaming division of Warner Bros. Discovery after the latter company announced earlier this year that division into two parts. WBD is expected to spin off its Discovery business in the third quarter of 2026.
Paramount Takeover Attempt Offers Warner Bros. Investors $30 per share (as opposed to Netflix's $27.5 per share), for a total of $108 billion. Unlike the Netflix deal, Paramount's proposal included acquiring all of Warner Bros. Discovery for cash.
In its statement to investors, Paramount said its private offering (one of six) for WBD now goes “directly to WBD's shareholders and its board of directors to ensure they have the opportunity to pursue this clearly superior alternative.”
Following the announcements of Netflix and Paramount, Warner Bros. Discovery rose sharply, ending the week at $29.98 per share on Nasdaq.after rising in value by about 35% since last month.
Netflix's proposal to acquire Warner Bros.
By acquiring Warner Bros., HBO and HBO Max, Netflix will not only expand its own catalog of shows and films, which already includes such popular series as Stranger Things, Wednesday And Squid gamewith Warner Bros. properties Harry Potter“Friends” and “Batman” but will also be home to HBO shows including “Game of Thrones” and “Legacies.”
“Our mission has always been to entertain the world,” said Netflix co-CEO Ted Sarandos. in the statement. He promised the deal would bring audiences “more of what they love and help define the next century of storytelling.”
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Greg Peters, co-CEO of Netflix, praised the longevity and executive team of WBD, adding: “With our global reach and proven business model, we can introduce wider audiences to the worlds they create, providing our members with more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating greater value for shareholders.”
The big question for most Netflix subscribers will likely be how the acquisition might affect the monthly cost of the subscription. Netflix is our best choice of the many streaming services available to you, but one of the few downsides we note in our review is that the premium plans are already on the expensive end of the spectrum.
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It's too early to tell what the impact on pricing might look like, but streaming services is getting more and more expensiveand this acquisition is unlikely to change that trend. While it's unclear whether Netflix plans to combine both streaming apps into one offering, the company said the agreement will allow it to “optimize its plans for consumers, enhancing the viewing experience and increasing access to content.”
The deal, which values Warner Bros. Discovery at approximately $72 billion after debt was unanimously approved by the boards of directors of both companies. This is expected to allow Netflix to increase its production capacity for original games and invest in more original content. Netflix said it expects to retain Warner Bros. ongoing operations and still expects theatrical releases of films (such as Batman Part 2) to remain as usual.
What happens next if the deal clears any regulatory hurdles? “If this deal makes it through regulatory approval, Netflix will now cement itself as the Goliath of streaming services thanks to the combined weight of HBO Max and the content studios behind it all,” Forrester research vice president Mike Proulx said. “This deal changes the approach to the streaming wars, representing a seismic shift in the entertainment industry.”
President Trump expressed concern about the Netflix-Warner Bros. merger, saying last Sunday: “It's a big market share. This could be a problem.” Trump confirmed that Netflix co-CEO Ted Sarandos recently met with him to lobby for the acquisition.
