Netflix to Acquire Warner Bros. in $83B Deal, Spurning Paramount
Paramount alleges a "tainted" and "unfair" bidding process as the landmark deal reshapes the streaming landscape and solidifies Netflix's market dominance.
Netflix has prevailed in a contentious bidding war to acquire the storied film and television assets of Warner Bros. Discovery for an enterprise value of approximately $82.7 billion, a blockbuster deal poised to dramatically reshape the global media landscape.
The agreement, which includes the Warner Bros. film and TV studios, the coveted HBO cable network, and the Max streaming service, marks one of the largest media consolidations in history. Yet the announcement was immediately shadowed by acrimony, as rival bidder Paramount Global launched a blistering attack on Warner Bros. Discovery, alleging a "tainted" and unfair auction process with a "predetermined outcome."
In a letter sent to Warner Bros. Discovery CEO David Zaslav, Paramount’s litigation counsel accused the company of failing to follow “the semblance and reality of a fair transaction process," calling the proceedings "myopic,” according to reports from The Guardian.
The public rebuke from Paramount underscores the high stakes of the auction, which it saw as a crucial opportunity to gain the scale necessary to compete in an industry dominated by giants like Netflix and Disney. Having recently completed its own merger with Skydance Media, Paramount was an aggressive suitor for the Warner Bros. assets. Its failure to secure the deal leaves the company, with a market capitalization of just under $7 billion, in a strategically vulnerable position.
Shares of Warner Bros. Discovery jumped nearly 5% to $25.75 on the news, reflecting the premium of the Netflix offer. In contrast, Netflix shares dipped 3.5% to $99.57, as investors digested the colossal price tag and the significant regulatory hurdles that lie ahead. The deal is expected to face intense antitrust scrutiny from regulators in both the United States and Europe.
Under the terms of the agreement, Netflix’s largely cash offer values Warner Bros. Discovery’s equity at $72 billion. In a sign of its confidence in securing regulatory approval, Netflix has offered a substantial $5.8 billion breakup fee if the deal is thwarted, according to Forbes. The transaction is structured to close after Warner Bros. Discovery spins off its global networks unit, including channels like CNN and TNT, into a separate public company, a process expected to be completed in the third quarter of 2026.
For Netflix, the acquisition is a crowning achievement, cementing its status as the preeminent force in streaming entertainment. The deal brings under its roof a legendary Hollywood studio responsible for franchises like Batman and Harry Potter, alongside the critically acclaimed programming of HBO, the engine behind hits such as Game of Thrones and Succession.
This consolidation of content and production capabilities poses a formidable challenge to competitors. “If I was tasked with doing so, I could not think of a more effective way to reduce competition in Hollywood than selling WBD to Netflix,” Jason Kilar, the former head of Warner Bros., posted on the social media platform X.
For Paramount, the loss is a significant strategic setback. The company has struggled to keep pace in the capital-intensive streaming wars, with its Paramount+ service fighting for market share against much larger rivals. The failure to acquire Warner Bros. assets renews questions about its long-term strategy and whether it can survive as a standalone entity. Analysts suggest the company, which controls assets including CBS, MTV, and the Paramount film studio, could now become a primary acquisition target itself as the industry continues its inexorable trend toward consolidation.