Netflix’s Proposed Acquisition of Warner Bros. Discovery

In early December 2025, Netflix announced a deal to purchase Warner Bros Discovery’s film and television studios, HBO, and HBO Max for an enterprise value of $82.7 billion. The agreement values each Warner Bros Discovery share at $27.75, split between $23.25 in cash and $4.50 in Netflix stock, giving the deal an equity component of about $72 billion. cheddar

The acquisition is set to close 12 to 18 months after Warner Bros Discovery spins off its cable networks (such as CNN, TNT, and TBS) into a separate entity, a step expected in Q3 2026.  Netflix plans to keep Warner Bros’ production infrastructure and global streaming rights, while the linear networks will remain independent. 

Co-CEO Ted Sarandos has said Netflix aims to “become HBO faster than HBO can become Netflix” and has assured that Warner Bros movies will continue to receive theatrical releases, though with evolving distribution windows. cheddar The deal is projected to generate $2–3 billion in annual cost savings by the third year. cheddar

However, the transaction faces regulatory scrutiny in the U.S. and Europe, with comments from former President Donald Trump indicating potential concerns about market share. reuters.com

Paramount Pictures’ Rival Bid

On December 8, 2025, Paramount Pictures (now Paramount Skydance) launched a hostile all-cash bid of $108.4 billion (or $30 per share) to acquire the entire Warner Bros Discovery empire, including its cable networks. explain This offer surpasses Netflix’s proposal by roughly $18 billion and is backed by the Ellison family, RedBird Capital, and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, as well as an investment from Jared Kushner’s Affinity Partners. reuters.com

Paramount’s bid is framed as a “superior alternative” that offers higher headline value, greater regulatory certainty, and a pro-Hollywood, pro-consumer future. reuters.com The tender offer is set to expire on January 8, 2026, creating a decisive deadline for Warner Bros Discovery shareholders. howaremarkets

What’s Next?

Warner Bros Discovery’s board must decide whether to recommend the Paramount offer or stick with the existing Netflix deal. popculturebrain If the board favors Paramount, Netflix could match or top the offer, or the deal could proceed to a shareholder vote. livemint.com Both proposals face antitrust review, and industry observers expect a potentially prolonged battle.

As for what stays with Warner Bros after a potential acquisition, HBO Max is expected to remain a separate service, at least initially, according to Warner Bros Discovery CEO David Zaslav. techradar.com Key executives like Zaslav are slated to stay on in leadership roles for the Warner Bros segment after the split. reuters.com

In Summary

• Netflix’s deal: $82.7 billion enterprise value, targeting Warner Bros’ film, TV, and streaming assets, with closure expected after Q3 2026.
• Paramount’s bid: $108.4 billion all-cash offer for the entire Warner Bros Discovery, including cable networks, with a tender offer deadline of January 8, 2026.
• Regulatory hurdles: Both deals face scrutiny, and the outcome remains uncertain.
• Warner Bros leadership: Key executives are expected to stay, and HBO Max will likely remain a separate service in the near term.

The situation is evolving, and the final outcome will depend on regulatory decisions, shareholder choices, and possible further negotiations.