Netflix has decided to acquire Warner Bros. Discovery’s streaming and studio division using cash, outbidding Paramount in a move that could reshape the entertainment industry globally. The $72 billion deal, valued at $27.75 per share, was announced by Netflix on the same day as its fourth-quarter earnings report. This agreement accelerates the timeline for a shareholder vote and ensures certainty of value at closing, according to a letter to investors.
The competition between Netflix and Paramount for different parts of the company has been ongoing. While Netflix is interested in the studio business and streaming content, Paramount seeks to purchase the entire entity, including assets like CNN and the Discovery+ streaming platform.
Geetha Ranganathan, a senior media analyst at Bloomberg Intelligence, has questioned the necessity of the deal for Netflix, suggesting it may be more critical for Paramount Skydance under new CEO David Ellison. Despite this, Netflix’s growth in subscribers has slowed, prompting concerns among investors. The company is now focusing on increasing engagement to enhance its value.
The acquisition of Warner Bros.’ extensive content library, featuring popular franchises like Harry Potter, hit TV shows like Friends and The Sopranos, and classic films such as Citizen Kane and Casablanca, is expected to significantly boost Netflix’s business, according to Ranganathan.
The journey leading to this acquisition began in October 2025 when Warner Bros. Discovery announced plans to explore a sale after splitting into two separate entities. Paramount’s initial bid was rejected, while Netflix faced challenges with its earnings due to tax issues.
In November 2025, Netflix made a commitment to continue releasing Warner Bros. films in theaters, despite its previous emphasis on streaming. By December 2025, Netflix finalized the $72 billion cash and stock deal with Warner Bros., drawing criticism from U.S. Congress members and Hollywood unions. Paramount countered with a hostile bid backed by various investors, including Jared Kushner and Larry Ellison.
In January 2026, Warner Bros. Discovery rejected Paramount’s offer and endorsed Netflix’s proposal, urging shareholders to support the deal. The future implications of this acquisition remain uncertain, with regulatory approval and potential challenges ahead for Netflix in managing Warner Bros.’ assets and navigating antitrust concerns.