Hollywood loves a plot twist, and this one is loud. Netflix thought it had locked in a historic win by buying Warner Bros. Discovery’s studio and streaming business. Then Paramount stormed in with a much bigger check and a far bolder plan.
On December 5, 2025, Netflix announced it had reached a deal to buy Warner Bros. Discovery’s film studio and streaming assets. The equity value landed at $72 billion, with total enterprise value climbing to $82.7 billion. It was bold, strategic, and very Netflix.
The deal covers Warner Bros. Pictures, Warner Television, DC Comics, and HBO Max. That means Harry Potter, Batman, Game of Thrones, and decades of classic films would land under Netflix’s roof. For Netflix, it was a content jackpot and a long-term play to own fewer licenses and more originals.
However, this was not a full takeover. Warner Bros. Discovery planned to spin off its cable networks into a new company called Discovery Global. CNN, TNT, Discovery Channel, and other linear assets would sit outside the Netflix deal. Netflix wanted streaming and studios, not cable baggage.
The offer priced WBD shares at $27.75 each. That included $23.25 in cash and $4.50 in Netflix stock. Both boards approved the agreement, and the contracts came with serious penalties. Netflix would owe $5.8 billion if regulators blocked the deal. WBD would pay $2.8 billion if it walked away.
At the time, it looked locked. Three days later, everything changed.
Paramount’s Hostile $108.4 Billion Counterstrike
Boli / Unsplash / Paramount Skydance launched a hostile bid aimed straight at Warner Bros. Discovery shareholders. The offer totaled $108.4 billion, all in cash, valuing shares at $30 each.
That is about $18 billion more cash than Netflix put on the table.
The streaming giant bypassed WBD management entirely. It went public, set a deadline of January 8, 2026, and told shareholders to choose money now over promises later. This move raised the pressure fast.
Paramount wants the whole company. Studios, streaming, cable networks, everything Netflix passed on. The pitch is scale. Paramount argues that combining CBS, Paramount Pictures, and Warner Bros would create a media giant strong enough to compete with Netflix, Disney, and Amazon.
The company also claims its deal would face fewer antitrust problems. Netflix buying HBO Max would tighten the streaming market even more. Paramount says its plan spreads power instead of concentrating it. Regulators may or may not agree.
For now, WBD’s board says it will review the offer but still supports Netflix’s deal. That stance could change quickly if shareholders start leaning toward Paramount’s bigger check.
Regulators, Politics, and More
No matter who wins, the deal will crawl through regulators for at least a year. Most estimates put the review period between 12 and 18 months. Antitrust officials will focus on one question. Does this deal reduce competition too much?
A combined Netflix and HBO Max would dominate streaming. Analysts say it could control roughly one-third of U.S. streaming activity and as much as 60 percent of global streaming app users. That kind of share makes lawmakers nervous.
Criticism is already loud. Senator Elizabeth Warren has labeled the Netflix deal an anti-monopoly nightmare. President Donald Trump has said he will be involved in the review.
Brad / Unsplash / Netflix could still win if regulators approve the deal. If that happens, Netflix plans to cut costs and merge operations. Analysts estimate $2 to $3 billion in annual savings.
For viewers, that might mean one massive app packed with Warner Bros classics and Netflix originals. Over time, though, prices would likely rise. Fewer competitors usually lead to higher monthly bills.
Paramount could also pull this off. If enough shareholders tender their shares, the hostile bid succeeds. That would create a massive traditional media company with studios, broadcast TV, cable networks, and streaming under one roof. It would be an old-school scale fighting new-school tech.
