Netflix has decided to acquire Warner Bros. Discovery’s streaming and studio division using cash, outbidding Paramount in a move that could have a significant impact on the global entertainment industry. This development was announced by Netflix alongside its fourth-quarter earnings report. The deal, valued at $72 billion USD, equates to $27.75 USD per share and aims to expedite the shareholder vote process for Warner Bros. Discovery (WBD).
The rivalry between Netflix and Paramount over this acquisition has been ongoing for months. While Netflix is primarily interested in acquiring WBD’s studio business and streaming library, Paramount seeks to purchase the entire company, which includes assets like CNN and the Discovery+ streaming service.
Geetha Ranganathan, a senior media analyst at Bloomberg Intelligence, raised questions about the necessity of the deal for Netflix. The acquisition is seen as crucial for Paramount Skydance, led by new CEO David Ellison, while Netflix is facing slowed subscriber growth and is looking to enhance engagement to drive its value.
The deal with Warner Bros. offers Netflix access to a rich content library featuring popular franchises such as “Harry Potter,” beloved TV shows like “Friends” and “The Sopranos,” and classic films including “Citizen Kane” and “Casablanca.” This extensive catalog is expected to significantly boost Netflix’s business operations.
The timeline leading up to this acquisition began in October 2025 when WBD announced its intention to explore a sale. Despite initial bids being rejected, Netflix’s interest in Warner Bros. emerged by the end of the month. In November, Netflix made a strategic move by committing to release Warner Bros. films in theaters, a departure from its traditional streaming model.
By December, Paramount increased its proposed breakup fee, while Netflix finalized the $72 billion deal with Warner Bros. Discovery. This acquisition faced criticism from various quarters, with concerns raised about potential job cuts and industry consolidation. Paramount responded with a hostile bid, supported by investment funds and Larry Ellison’s personal backing.
As of January 2026, Warner Bros. Discovery rejected Paramount’s bid and endorsed Netflix’s offer, citing concerns about the risks associated with Paramount’s financial leverage. Analysts anticipate a shareholder vote on the deal soon, which could shape the future landscape of the entertainment industry, with regulatory and strategic considerations ahead for Netflix post-acquisition.
