Partial acquisition (Netflix) Full acquisition (Paramount Skydance)
Cost
As of January 29, 2026:
$108.4 billion (Paramount Skydance)
$82.7 billion (Netflix)
Initiated
December 5, 2025 (Netflix) December 8, 2025 (Paramount Skydance)
Status
Pending
Since late 2025, Warner Bros. Discovery (WBD) has drawn multiple acquisition offers from several entertainment companies. On October 21, 2025, WBD announced it would consider a "broad range of alternative options" to its previous plans of splitting the company in two. Netflix, Paramount Skydance, and Comcast had all submitted bids by November 20, 2025. After a second round of bidding, Netflix was widely seen as the frontrunner by December 4, 2025. In response, Paramount Skydance questioned whether WBD was truly serving its shareholders' best interests.[1][2]
Netflix emerged victorious in the bidding war and announced its deal with WBD to acquire its streaming and studios division (which includes assets like Warner Bros. Pictures, HBO, HBO Max, DC Studios, DC Entertainment, and the company's media library) for $27.75 per share in a joint cash-stock offer valuing the division at $72 billion in equity value and $82.7 billion in enterprise value on December 5, 2025. WBD's Global Linear Networks division will be spun off as Discovery Global in mid 2026. The proposed Netflix-WBD deal received unfavorable reception, with many voicing concerns at how it would affect the entertainment industry. Three days later, on December 8, 2025, Paramount Skydance submitted a rival all-cash bid for the entirety of Warner Bros. Discovery in a hostile takeover bid directly to its investors, with Paramount's offer valuing WBD at $108.4 billion at $30 per share. WBD said it would take several weeks to review Paramount's offer while also evaluating its previous agreement with Netflix.[3]
Background
WBD history
Warner Bros. Discovery was established on April 8, 2022 from the merger of AT&T's WarnerMedia and Discovery, Inc.[citation needed] AT&T acquired Time Warner on June 14, 2018 for over $100 billion.[4] AT&T sought to reinvent itself as a major player in the entertainment industry, but following unsuccessful synergy efforts, AT&T divested itself of its WarnerMedia division to refocus on its core business of telecommunications.[5] Early issues facing WBD were its debt load of over $43 billion.[6] On September 28, 2022, WBD's President and CEO, David Zaslav, addressed speculation that Warner Bros. Discovery was considering a sale by 2024 and said they were "absolutely not for sale", and "have everything we need to be successful."[7][8] By July 2024, it was reported that Zaslav and WBD executives were considering potentially breaking up the company to separate the growing unprofitable television networks from the more profitable film studios and streaming businesses.[7][8]
On December 12, 2024, Warner Bros. Discovery announced it would be restructuring its corporate structure into two divisions: Streaming and Studios and Global Linear Networks. Zaslav stated this new structure would enable greater flexibility and "potential future strategic opportunities".[7] These strategic opportunities would come to fruition on June 9, 2025, when WBD said it would move towards separating into two companies.[9] This split was expected to be completed sometime in 2026, with Streaming & Studios becoming "Warner Bros." and Global Linear Networks becoming "Discovery Global."[10]
In September 2025, David Ellison, the chief executive of the recently mergedParamount Skydance, held a board meeting to discuss the acquisition of Warner Bros. Discovery (WBD) so the new company could better compete against Amazon, Disney, and Netflix, Inc.. A few days later, he visited WBD CEO David Zaslav's home to propose a $19 per share cash and stock bid, formalized a few days later in a letter that set the cash proponent at 60%. At the time, Zaslav was in the planning to split WBD into a movie studios and streaming company and a television network business and WBD refused the deal. At the end of the month, the Paramount deal was bumped up to $22 per share with 67% cash, a $2 billion payment if it did not pass regulatory review, and a proposal for Zaslav to stay as co-CEO and co-chairman of the new company. A third offer on October 13 further increased it to $23.50 per share and 80% cash, to no avail.[11]
After Paramount's three failed attempts, talks of a potential sale of WBD began circulating, and the company announced it was reviewing strategic alternatives after receiving unsolicited interest from multiple parties.[12] Early public reporting identified three major potential bidders: Netflix, Inc., Comcast (through its NBCUniversal media subsidiary), and the newly formed Paramount Skydance (which hold several networks previously owned by Warner such as MTV, Nickelodeon, The Movie Channel, VH1 and Comedy Central; Paramount and Warner both own their respective stakes at The CW and Philo).[12] In the first round of non-binding proposals, WBD reportedly received an offer from Paramount Skydance that would acquire the entire company (including its cable networks and its share in The CW and Philo), but the board rejected that bid as inadequate.[13][14] According to The Wall Street Journal, Paramount's first round bid was $25.50 per share for the whole company, while the Netflix and Comcast offers only sought the studios and HBO Max.[11]
After rejecting the initial offer, WBD opened a broader auction. By late November 2025, binding second-round bids had been submitted by Netflix, Paramount Skydance and Comcast. According to sources familiar with the process, Netflix submitted a mostly cash offer of roughly US$28 per share for WBD's studio and streaming assets, a bid that outpaced Paramount's competing offer (around US$27 per share), though the two offers were not directly comparable because Paramount's bid covered the full company, including cable networks and WBD's share in The CW and Philo. According to The Wall Street Journal, Paramount's second-round bid was an all-cash $26.50 per share offer.[11]
As the process moved to a final decision, Paramount Skydance sent a letter to WBD's CEO alleging that the sale had become "tilted" in favor of Netflix. The letter claimed that the board had embarked on "a myopic process with a predetermined outcome", pointing to alleged conflicts of interest and questioning whether the auction remained fair.[15] According to The Wall Street Journal, Paramount's final offer was $30 per share, all-cash, and it had secured arrangement from its three Middle Eastern sovereign wealth backers to not take board seats that would trigger increased regulatory review.[11]
Despite those objections, on December 5, 2025, multiple outlets reported that Netflix had prevailed in the bidding war and entered exclusive negotiations with WBD to acquire its studio and streaming business. The announced deal values Warner Bros. Discovery at US$82.7 billion enterprise value (US$72.0 billion equity value and $59 billion of debt from Wells Fargo, HSBC, and BNP Paribas), and prices post-split Warner Bros. shares at US$27.75.[16] The proposal represented Netflix's first departure from its long-standing "builders, not buyers" approach, marking a shift toward acquisition-led expansion.[17] Prior to this, the company had strongly considered acquiring other companies, including: The Walt Disney Company, 20th Century Fox, Electronic Arts-Konami coalition, and Paramount Global. However, this did not happen because, in addition to the board not deciding how the agreements would be made, they also did not want to harm the share price by buying a less valuable asset at an excessive price, as they feared what this could signal to shareholders.[18]
U.S. streaming market share as of January 2026. Analysts have estimated that a merged Netflix-Warner Bros. entity could control 30.7% of the U.S. streaming market.[19][20][21]
If WBD accepts Paramount Skydance's offer, it will have to pay Netflix a $2.8 billion break up fee and if the current deal falls through, Netflix will have to pay WBD a $5.8 billion break up fee.[22] The latter is among the biggest break up fees ever.[23] At 7-8% of the deal's total value, legal scholars speculate that the magnitude of the fee itself could possibly face legal scrutiny[24] since the Delaware courts have typically upheld breakup fees of only 3-4%.[25]
Harris Oakmark's Alex Fitch, the 4th-largest owner of Warner Bros. Discovery shares, stated that the bidding war isn't over yet and believes the board accepted Netflix's offer to keep the bidding war going.[26] Massimo Stabilini, a hedge-fund manager at Burren Capital Advisors and a Warner Bros. Discovery shareholder, stated that "there is a very good chance there will be a bidding war."[27] On December 18, 2025, Alex Fitch encouraged Paramount to increase its offer for Warner Bros. Discovery.[28]
In November 2025, Starz (which has also planned to acquire A+E Global Media from The Walt Disney Company and Hearst Communications) submitted a $25 billion bid for Warner Bros. Discovery's Global Linear Networks division alongside a bid for 20% of Warner Bros. Discovery's studio and streaming businesses, according to disclosures related to WBD's strategic review.[29] The proposal focused on the cable networks business, which includes brands such as CNN, TNT, TBS, and Discovery, and was structured separately from WBD's studio and streaming assets.[30]Standard General was also considered as a potential buyer of the division.[31]
In a letter regarding potential regulatory concerns, Paramount Skydance stated that a proposed transaction between Paramount and Warner Bros. Discovery (WBD) would likely be pro-competitive and could face a relatively smooth approval process from regulators. By contrast, Paramount argued that a merger between Netflix and WBD would face significant uncertainty and opposition from competition law enforcement agencies in the United States and internationally. Paramount noted that such a combination could reduce the number of films released in theaters, potentially accelerating the shift toward streaming and negatively affecting brick-and-mortar theaters. The letter also highlighted that the co-CEO of Netflix has referred to movie theaters as an "outdated" concept, suggesting that Netflix ownership of WBD could contribute to declining theatrical attendance. Additionally, Paramount observed that combining Netflix with HBO Max, the fourth-largest player in the subscription video-on-demand (SVOD) market, would result in a company controlling 43% of global SVOD subscribers, which could raise antitrust concerns under U.S. law and other international jurisdictions.[32]
On December 8, 2025, Paramount Skydance launched a hostile takeover bid for Warner Bros. Discovery, announcing an all-cash offer valued at $30 per share, representing roughly $108.4 billion in enterprise value. Equity would be $41 billion backstopped by the Ellison family, RedBird Capital, PIF, QIA, ADIA, and $54 billion of debt from Bank of America, Citigroup and Apollo Global Management. Paramount Skydance claims their offer provides $18 billion more in cash than Netflix's offer. Paramount argued that the combination would create a stronger vertically integrated studio and streaming competitor, leveraging Warner Bros.' film and television assets alongside Paramount's broadcast and cable portfolio. Warner Bros. Discovery's board stated that it would review the proposal in accordance with its fiduciary duties. Paramount Skydance believes it gives more certainty to shareholders and says it can close the deal in a shorter time frame, around 10 to 12 months (median average - 11 months), compared to Netflix, which said it would take 12 to 18 months (median average - 15 months) to close its deal.[3][33]
On December 9, 2025, the Warner Bros. Discovery Board of Directors stated it would "carefully review and consider Paramount Skydance's offer in accordance with the terms of Warner Bros. Discovery's agreement with Netflix, Inc.," and intended to advise its shareholders of "the Board's recommendation regarding Paramount Skydance's tender offer within 10 business days". The Board of directors also advised Warner Bros. Discovery shareholders to "not to take any action at this time with respect to Paramount Skydance's proposal."[34] On the same day, Semafor reported that David Ellison and his financial and legal team had met with major shareholders of Warner Bros. Discovery, with shareholders reassured that Paramount Skydance's bid for Warner Bros. Discovery was better value compared to Netflix's bid, that Paramount Skydance would have an easier time passing regulatory hurdles compared to Netflix, and that the financing of Paramount Skydance's bid, aided by the three Middle Eastern governments involved, was secure.[35]
On December 16, 2025, both The Wall Street Journal and Bloomberg News reported that Warner Bros. Discovery was preparing to recommend that its shareholders reject the latest acquisition offer submitted by Paramount Skydance and instead support the company's existing agreement with Netflix. According to the reports, Warner Bros. Discovery's board of directors believes the Netflix deal provides greater value, higher certainty, and more favorable financial terms than Paramount's hostile offer, valued at $30 per share, primarily due to concerns over financing and other conditions of the proposal.[36][37] The WBD board of directors made the recommendation the next day, arguing shareholders should pursue the Netflix acquisition proposal instead.[38][39]
That same day, Bloomberg and Variety reported that Affinity Partners, the investment firm of Jared Kushner, Donald Trump's son-in-law, had withdrawn from Paramount Skydance's acquisition bid for Warner Bros. Discovery. Affinity said in a statement to Bloomberg that: "With two strong competitors vying to secure the future of this unique American asset, Affinity has decided no longer to pursue the opportunity. We continue to believe there is a strong strategic rationale for Paramount's offer".[40][41]
On December 17, 2025, The Wrap reported that they had obtained a letter to Warner Bros. Discovery staff, written by CEO David Zaslav, which stated that the regulatory process for Netflix's bid for Warner Bros. had begun. The Wrap also reported that the letter had been released just after the Warner Bros. Discovery board of directors had unanimously rejected Paramount's bid for Warner Bros. Discovery.[42]The Guardian also reported that the Warner Bros. Discovery board of directors had unanimously rejected Paramount Skydance's bid for the whole of Warner Bros. Discovery, and also reported that the Warner Bros. Discovery board of directors had advised shareholders to accept Netflix's offer for Warner Bros. over Paramount Skydance's offer for Warner Bros. Discovery.[43]
On the same day, Paramount affirmed that it remained committed to acquiring Warner Bros. Discovery in its entirety, and that its offer was still superior to Netflix's bid for the Warner Bros. studio and streaming assets. They also confirmed that their offer is being financed by $41 billion of new equity backstopped by the Ellison family and RedBird Capital, and $54 billion of debt commitments from Bank of America, Citi, and Apollo.[44]
On December 22, 2025, Paramount amended its $30-per-share all-cash offer for Warner Bros. Discovery to address concerns raised by WBD board and shareholders. The revised proposal includes an irrevocable personal guarantee from Larry Ellison covering $40.4 billion of the equity financing, ensuring the financial backing for the transaction. It also includes a commitment not to revoke the Ellison family trust during the transaction period.[45] On the same day, the Warner Bros. Discovery board of directors advised shareholders not to take any action regarding the amended offer, whilst they "carefully review and consider" Paramount Skydance's offer, with Deadline reporting that, under the amended offer, Warner Bros. Discovery shareholders have until January 21, 2026, to tender their shares to Paramount Skydance.[46]
On December 23, 2025, the fifth largest shareholder of Warner Bros. Discovery, Harris Oakmark, stated that the revised bid for Warner Bros. Discovery by Paramount Skydance, was "necessary, but unsufficient", with Harris Associates Portfolio Manager, and Director of U.S. Research, Alex Fitch, writing in an email to Reuters, "We see the two deals as a toss-up, and there is a cost to changing paths. If Paramount is serious about winning, they're going to need to provide a greater incentive."[47]
On December 24, 2025, The Wrap reported that if Paramount Skydance fails to acquire Warner Bros. Discovery, it may try to merge with another studio, with The Wrap stating that some experts believe that Paramount Skydance may try to merge with Lionsgate or NBCUniversal if their Warner Bros. Discovery bid fails.[48]
On December 30, 2025, Reuters reported that Warner Bros. Discovery's board of directors would likely reject the latest $108.4 billion hostile acquisition offer from Paramount Skydance, which includes a personal guarantee of $40.4 billion in cash from Larry Ellison, during their meeting, which Reuters stated was to take place a week from the publication of the article.[49]
Netflix's cinema pledge, and Paramount Skydance's action against WBD
On January 2, 2026, IGN reported that Netflix may give Warner Bros. films a 17-day window in theaters if Warner Bros. is acquired by Netflix.[50] Two weeks later, on January 16, 2026, Ted Sarandos extended the theatrical window time to 45 days, for movies made by Warner Bros. if Netflix was able to acquire the company.[51]
On January 7, 2026, it was reported by Variety that Warner Bros. Discovery's board of directors had rejected the amended offer by Paramount Skydance to acquire the entire company, with the board writing in a SEC filing that they considered the Paramount Skydance offer to be of "insufficient value", and that the offer was "inadequate", as they believed the Netflix offer was of better value to their shareholders, with the board sticking with the Netflix offer for Warner Bros. Discovery's Streaming and Studios division.[52][53] On that same day, Cinema United warned a congressional committee that the acquisition of Warner Bros. Discovery by either Netflix or Paramount will have a negative impact on their business. They also argued that the consolidation threatens to reduce the number of movies released theatrically and increase the leverage of studios in exhibition negotiations. The trade association outlined its concerns over consolidation in a statement to a House Judiciary antitrust subcommittee, which is holding a hearing on Wednesday on competition in digital streaming.[54]
On the same day, The Wrap reported that Warner Bros. Discovery's 7th largest shareholder, Pentwater Capital Management, sent a letter accusing the company of not fully engaging with Ellison's amended offer. Pentwater's CEO, Matt Halbower, stated in an interview with CNBC that Paramount's eighth offer was "economically superior" to Netflix's deal for the studio and streaming assets. "It is superior in terms of regulatory risk, and I understand that the board has some legitimate issues with it, but those legitimate issues don’t warrant giving Paramount the stiff arm and refusing to actually have a conversation. That’s not how I want my board of directors to act," Halbower told the outlet. "I want them to be willing to engage in a conversation with a party that has the ability to close a transaction and has indicated publicly that it’s $30 offer is not best and final, which screams to me that it is willing to pay even more than 30." Halbower also disagreed with Samuel DiPiazza Jr.'s statements over why the WBD board was passing on Paramount's offer in favor of Netflix's, calling the board's argument "specious" and pointing out that Netflix would put $59 billion in debt on the deal. "The Ellison family are AAA rated, and they have a higher credit rating than Netflix," Halbower continued. "The idea that Bank of America and Citibank are going to fall down on a contractual obligation to finance the debt when you’re going to have over $41 billion of equity that’s going to be put up by the Ellison family, as well as their partners in Middle East, which really have net worths even greater than the Ellison family is wrong. That’s just not going to happen. That’s not a legitimate risk factor to turn down this deal, especially when, by the way, they could have said this last time, and instead, it looks like they’re digging into their pocket to come up with something brand new, moving the goal post."[55]
Also on the same day, Paramount's chief legal officer Makan Delrahim wrote a letter to lawmakers in Washington, D.C. The letter said that Netflix’s proposed acquisition of Warner Bros. Discovery assets was "presumptively unlawful," arguing that it would "further cement its dominance in streaming video on demand." The letter was filed with a House Judiciary antitrust subcommittee on the same day that it held a hearing on the streaming market, with the sale of WBD a primary topic of discussion among lawmakers and the expert witnesses. Paramount representatives did not address the subcommittee in person, but the lawmakers took written comments.[56]
On January 8, 2026, Paramount reaffirmed its' $30 per share offer for Warner Bros. Discovery.[57]
On January 11, 2026, according to The Guardian, Donald Trump wants CNN sold. He has said so repeatedly and publicly, demanding it "should be sold" in any deal involving Warner Bros. Discovery. Now one of America's largest media companies is racing to oblige him, while another looks to consolidate its power. Wednesday's House judiciary hearing on streaming competition – where lawmakers voiced concern over the Trump administration's influence and a potential merger's toll on consumers – made clear just how dangerous both options are for free speech, audiences and democracy itself. Netflix has bid $82.7 billion for Warner Bros. Discovery, only to be countered by a hostile $108 billion takeover bid from Paramount Skydance, led by David Ellison, son of Trump's ally Larry. Neither deal serves the public interest, and both are dangerous for the future of free expression. Both would produce an unprecedented concentration of power over what Americans watch and which stories get told.[58] On that same day, Sony Pictures Motion Picture Group Chairman and CEO, Tom Rothman on the Golden Globes red carpet, gave props to the congloms circling Warner Bros. — Netflix and Paramount — saying that "what I'm gratified to hear is that all of the parties involved have indicated they understand the value of the theatrical window."[59]
On January 12, 2026, Paramount Skydance filed a lawsuit against Warner Bros. Discovery. It also announced its intent to nominate directors to the WBD board, propose an amendment to WBD's bylaws to require WBD shareholder approval for any separation of Global Networks, and reaffirmed its hostile bid at $30 a share.[60] "WBD has failed to include any disclosure about how it valued the Global Networks stub equity, how it valued the overall Netflix transaction, how the purchase price reduction for debt works in the Netflix transaction, or even what the basis is for its 'risk adjustment' of our $30 per share all-cash offer. We filed suit this morning in Delaware Chancery Court to ask the court to simply direct WBD to provide this information so that WBD shareholders have what they need to be able to make an informed decision as to whether to tender their shares into our offer," David Ellison said in a letter.[61] On the same day, Warner Bros. Discovery responded to the lawsuit by Paramount Skydance, stating that the lawsuit was "meritless", that Paramount Skydance's efforts to convince shareholders that their $30 a share bid was superior to Netflix's bid was a way to "distract" investors, and Warner Bros. Discovery stated that "Despite six weeks and just as many press releases from Paramount Skydance, it has yet to raise the price or address the numerous and obvious deficiencies of its offer", with Warner Bros. Discovery's board remaining adamant that for Paramount to acquire Warner Bros. Discovery, they needed to raise their bid for the company.[62]
During the lawsuit, Warner Bros. Discovery will lay out the following:[63]
The value or value range ascribed to the Global Networks business, including valuation materials and underlying projections by WBD management or financial advisors.
Specific terms of the net debt adjustment in the Netflix merger agreement pursuant to which net debt on the streaming and studios business in excess of an undisclosed target will reduce the consideration payable to WBD stockholders, including such net debt target, and the level of such net debt assumed in the financial analyses provided to the board by WBD management or financial advisors. The net debt of Global Networks at the time of the separation is a key unknown.
All analyses, estimates, or projections provided to the board in respect of anticipated financing or bank costs should WBD not complete its proposed spin-off of the Global Networks business to form the basis for the conclusion that WBD will face sunk costs by abandoning its planned separation and distribution.
Any analyses, estimates or projections provided to the board in respect of anticipated financing or bank costs upon the completion of the Global Networks spin-off, or upon the failure of completion of the Netflix transaction. "While pointing to the opportunity cost from abandoning its planned separation of Global Networks, the Board failed to disclose the financial impacts and opportunity costs from a failed Netflix transaction, prohibiting a fair comparison between the two deals," claims Paramount.
A fair summary of the substantive work performed by any financial advisor in connection with any opinion rendered to the board related to the value of the Paramount offer, the Netflix merger, and/or Global Networks.
Qualitative or quantitative "risk adjustment" factors that the board considered or applied in concluding that the "risk adjusted" value of the Paramount offer is not superior to the Netflix merger, including the relative probability and magnitude of such risk factors, all quantitative adjustments to any valuation analyses on the basis of such factors, and how such factors were derived or calculated, and including whether and how any such "risk adjustment" factors were applied in valuing the Netflix merger.
On January 13, 2026, Netflix was reportedly amending its $82.7 billion offer for Warner Bros. Discovery's Streaming and Studios division, from a cash and stock offer, to an all-cash offer, whilst continuing with their $27.75 share price offer for the Studios and Streaming division of Warner Bros. Discovery.[64]
On January 14, 2026, a Democratic congressman is calling on Paramount to submit any acquisition of Warner Bros. Discovery to a foreign ownership review, even if the David Ellison-led company does not believe that it is technically required. Rep. Sam Liccardo (D-CA) wrote in a letter to Ellison that "voluntary filing would demonstrate good faith, enhance public trust, and provide assurance of the vetting of national-security, private data and influence risks."[65]
On January 15, 2026, Paramount CEO David Ellison argues that Discovery Global — made up of cable networks like CNN, TBS, Food Network and HGTV — is worth somewhere between nothing and 50 cents per share. Warner Bros. Discovery's board disagrees, pegging it closer to $3 to $5 per share, based on estimates from some Wall Street analysts.[66] On that same day, a Delaware judge on Thursday accepted Paramount Skydance's bid to extend its lawsuit, instead of expediting the lawsuit demanding more information from Warner Bros. Discovery about how that company decided Netflix's proposed $82.7 billion takeover was better than its own $108.4 billion hostile bid. Vice Chancellor Morgan Zurn of the Delaware Chancery Court said at a hearing that Paramount did not show it would suffer "cognizable irreparable harm" without the financial details it sought. Instead, Paramount did show a "beneficial recovery" with the financial details.[67] Despite the judge's ruling, Paramount Skydance has stated it will extend its tender offer, however, no date was given for the extension, and an extended tender offer by Paramount Skydance would most likely not receive regulatory approval for up to 18 months.[68] In addition to being denied by a Delaware judge, Paramount Skydance suffered a stinging defeat in Delaware, as Netflix becomes a winner in the Delaware courtroom.[69] Meanwhile, Paramount Skydance Corp.'s leadership has held talks in recent days with French President Emmanuel Macron amid a European charm offensive to garner support for its $108.4 billion hostile bid for Warner Bros. Discovery, Inc. As the race with rival suitor Netflix, Inc. heats up, senior executives from the US studio giant spoke to Macron and senior French officials, according to people familiar with the matter, who spoke on condition of anonymity. They also visited London on Thursday for discussions with UK officials, the people added.[70]
On January 16, 2026, Netflix's plans to accelerate revenue growth by buying Warner Bros. will be in focus on Tuesday when it reports fourth-quarter results, as the streaming pioneer battles Paramount for one of the most prized studios in Hollywood.[71] On the same day, Netflix co-CEO Ted Sarandos stated that they would continue with a 45 day theatrical window, for films made by Warner Bros., if Netflix were to acquire the Studios and Streaming division of Warner Bros. Discovery.[51] Sarandos has also stated that he was unsure why PresidentDonald Trump had shared the One America News article demanding that Netflix be stopped from purchasing the Studios and Streaming division of Warner Bros. Discovery, stating "No conversation we ever had was about any of the things that were in that article that he posted. I don't want to overread it, either.”[72] Meanwhile, British culture minister Lisa Nandy met Paramount Skydance chief executive David Ellison this week to discuss issues affecting the UK's film and television sector.[73] It was also reported that, on December 12, 2025, days after Netflix announced its intention to purchase the Studios and Streaming division of Warner Bros. Discovery, President Trump had purchased corporate debt securitybonds from both Warner Bros. Discovery, and Netflix, valued at up to $500,000 each.[74]
On January 19, 2026, the International Union of Cinemas, a key European cinema trade body, has expressed serious concerns about the proposed acquisition of Warner Bros. Discovery by Netflix and Paramount Skydance. A delegation from UNIC met with officials from the European Commission's Directorate-General for Competition on January 15, 2026, to highlight the potential negative impact on European cinema operators. UNIC has been vocal in its opposition to Netflix's proposed takeover, warning that the shift could lead to significant cinema closures. However, the organization is also wary of the potential consequences of the Paramount bid. In their meeting with European Commission officials, UNIC pointed to the 2019 merger between Disney and Fox, which it believes resulted in fewer films being released in theaters. UNIC fears that a similar trend could be triggered by any WBD sale. Beyond concerns over film releases, UNIC emphasized the substantial economic contribution of Europe's cinema industry, which was valued at €5 billion in 2024. The trade body highlighted how cinemas support GDP, create jobs, and pay taxes. UNIC also underscored the importance of exclusive theatrical windows for films, stressing that such models have a direct impact on box office performance. Popular upcoming WBD films, such as the highly anticipated A Minecraft Movie and Final Destination Bloodlines, are expected to be major draws for cinemas in Europe. "European cinemas play a unique role in the communities they serve", said Laura Houlgatte, CEO of UNIC. "They bring people together for a shared cultural experience to watch diverse films in the format that filmmakers originally intended." She further pointed out that US films, which account for over 50% of the market share in 21 European countries, are vital to the financial health of cinemas. Phil Clapp, UNIC's president, stressed that cinema operators need a reliable and consistent flow of content throughout the year. He pointed to Warner Bros.' 2025 film slate, which he believes will help cinemas attract diverse audiences. Clapp assured that UNIC would continue to work closely with the European Commission to ensure that the concerns of the cinema industry are properly addressed. With both Netflix and Paramount pushing hard for approval, the debate over WBD's future ownership is set to continue. UNIC's involvement in this regulatory process highlights the growing influence of cinema operators in shaping the future of film distribution in Europe.[75]
On January 20, 2026, Netflix amended its $82.7 billion bid for Warner Bros. Discovery's Streaming and Studios division, from a cash and stock offer, to an all cash offer, with Warner Bros. Discovery shareholders set to vote on the amended Netflix offer by April 2026.[76] On that same day, Warner Bros. Discovery finally accepted an amended, $72 billion all-cash offer from Netflix, agreeing to sell its studios and streaming business at $27.75 per share, The Wall Street Journal reports.[77]
On January 21, 2026, some clear winners are emerging in the bidding war between Netflix and Paramount Skydance for Warner Bros. Discovery: JPMorgan and Allen & Company. The two investment banks stand to make $90 million apiece for their work on the deal as advisers to Warner Bros., according to a securities filing released on Tuesday. JPMorgan has already earned significantly more on top of that for its role financing a $17.5 billion bridge loan that allowed Warner Bros Discovery to cleave off its cable news networks and sports programming, including CNN, from its movie and television division, two people familiar with the deal said. They asked not to be named to discuss internal matters. JPMorgan declined to comment. Allen & Company did not return a request for comment. The battle over Warner Bros. escalated this week with a revised $83 billion offer from Netflix for its studio and streaming businesses. All eyes now turn to Paramount, whose $108 billion tender offer for the entire company closes on Wednesday. It is widely expected to at least extend its existing offer, while investors hope it will counter with even more money.[78] On that day, the European Union's antitrust regulators are expected to scrutinize rival bids by Netflix and Paramount Skydance for Warner Bros. Discovery at the same time, setting up an unusual head-to-head competition review, Bloomberg News reported on Wednesday. The takeover battle puts major entertainment assets on the line, including DC Comics, iconic franchises ranging from Friends to Batman, and the HBO Max streaming service - a combination that could reshape Hollywood's power dynamics. The parallel examinations are likely because the proposals are advancing on similar timeline and both bidders have already held preliminary discussions with the EU's merger watchdog about their plans, the report said, citing people familiar with the matter. A parallel review would give Brussels added leverage over Warner Bros.' future, Bloomberg said. Regulators could shape the contest by quickly clearing one bidder while subjecting the other to a longer investigation or requiring concessions, potentially allowing a frontrunner to emerge. The companies and the EU did not immediately respond to Reuters requests for comment. Netflix on Tuesday revised its $82.7 billion offer to go all-cash in hopes of expediting the deal closure and providing greater financial certainty to investors worried about its previous stock-and-cash deal. The new all-cash bid, at $27.75 a share, has unanimous support from the Warner Bros. board. Any transaction is likely to face significant antitrust review, including the U.S. Department of Justice, the EU and the UK.[79] On that same day, again, Nick LaFleur is one of many Americans who think a Netflix-Warner Bros. tie-up might provide some relief from "subscription fatigue." The New York City resident has held on to a full poker hand of streaming services - Netflix, Disney+, Apple TV, HBO Max and Paramount+ - even as prices have risen steadily. Netflix on Tuesday switched its nearly $83 billion offer for most of Warner Bros to all-cash to keep Paramount at bay as the two compete for the company's coveted studio and content library. If successful, a Netflix-Warner Bros. tie-up could bring the HBO Max streaming service under the same umbrella as Netflix. LaFleur and others hope that might translate to smaller bills. "The trajectory of streaming prices, whether there is a merger or not, seems to be going up and up," said LaFleur, who works in tech communications. "I would imagine they would not just add the price of HBO Max to Netflix... my expectation is that I could get a discount." Americans now pay for an average of 2.9 streaming subscriptions despite the rising costs, which now come to $552 a year, according to a Forbes Home survey of 1,000 people published in November. As of June, most HBO Max subscribers had a Netflix subscription - 94%, in fact, according to Bernstein analysts, while 38% of Netflix users had HBO Max. A tie-up could revive streaming's early promise of "everything under one roof" before studios yanked their content to launch rival services.[80]
On January 22, 2026, the U.S. Department of Justice has launched an in-depth antitrust review of Netflix's proposed acquisition of Warner Bros. Discovery, a transaction valued at approximately $83 billion that would reshape the global media and streaming landscape. Warner Bros. Discovery disclosed in a regulatory filing that both companies received a formal "second request" for information from the DOJ's Antitrust Division on January 16. The request pauses the standard waiting period that would otherwise allow the deal to move forward, preventing the transaction from closing until regulators complete their review. The heightened scrutiny comes as Netflix revised the structure of the deal, shifting to an all-cash offer after initially proposing a mix of cash and stock. The revised structure is intended to provide greater certainty to shareholders and reduce exposure to market volatility. Under the proposed transaction, Netflix would acquire Warner Bros.' film and television studios, along with premium brands including HBO and HBO Max. Warner Bros. Discovery plans to separate Discovery Global, which houses CNN, TNT Sports, Discovery Channel, and several international networks, prior to the deal's completion. Netflix said the acquisition would be financed through a combination of existing cash reserves, credit facilities, and committed financing. Both companies' boards have approved the transaction, though it remains subject to regulatory clearance and a shareholder vote. The DOJ's second request signals a closer examination of whether the deal could reduce competition in streaming, film production, or television distribution markets. The review also comes amid growing consolidation concerns within the media and technology sectors. Adding further pressure, Warner Bros. Discovery has reportedly attracted interest from other potential buyers, including a competing proposal from Paramount valued at more than $100 billion. The competing bid has raised questions about deal certainty and valuation. Despite the regulatory delay, Netflix and Warner Bros. Discovery have indicated they still expect the transaction to close within 12 to 18 months (median average - 15 months), pending approval.[81] On that same day, Paramount has extended the deadline for Warner Bros. Discovery shareholders to throw their support behind the company's hostile takeover bid. The initial deadline of Wednesday has now been pushed to February 20, the company said in an SEC filing. Paramount CEO David Ellison, along with his senior exec team and financial backers, have been meeting with WBD investors in recent weeks in order to persuade them to tender their shares in favor of Paramount's offer. Paramount has vowed to wage a proxy fight and launch an effort to elect a set of board members who endorse its bid. Thursday morning's filing is the first step in that anticipated fight.[82] On that same day, again, Warner Bros. Discovery disclosed that just 7% of its shareholders have accepted Paramount Skydance's hostile $108.4 billion offer for the company, while 93% of its shareholders have rejected Paramount Skydance's hostile $108.4 billion offer for the company.[82] On that same day, yet again, Netflix, co-CEO Ted Sarandos plans to testify in February at a U.S. Senate committee hearing examining the company's proposed $82.7 billion purchase of the streaming and studio operations of Warner Bros Discovery, Bloomberg News reported on Thursday. Bruce Campbell, Warner Bros.' chief strategy officer, also plans to appear at the hearing, the report said, citing people with knowledge of the matter.[83]
On January 23, 2026, Netflix co-CEO Greg Peters says Paramount's WBD bid "doesn't pass the sniff test", but Netflix's WBD bid actually passed the "sniff test". In fact, he said Paramount Skydance's rival $108.4 billion all-cash bid for Warner Bros. Discovery is a smoke screen largely reliant on tech billionaire Larry Ellison, the father of Paramount CEO David Ellison, and tens of billions in debt. As of January 23, 2026, approximately 7% of WBD's 2.5 billion outstanding shares have been tendered to the Paramount deal, which is set to expire on February 20.[84]
On January 24, 2026, Federal Communications Commission Chairman Brendan Carr has highlighted substantial antitrust risks associated with Netflix's potential purchase of key assets from Warner Bros. Discovery in a Bloomberg interview. The concerns center on the immense market power that such a combination would create in the increasingly concentrated streaming landscape. Carr pointed out that Netflix has built its dominance through internal expansion, which he views positively, but integrating Warner Bros. Discovery's extensive film and television production capabilities alongside its streaming platforms could intensify existing imbalances in the sector.[85]
On January 26, 2026, a Senate committee will examine the proposed Netflix acquisition of Warner Bros. at a hearing scheduled for next week, with co-CEO Ted Sarandos scheduled to testify. The hearing before the Senate Judiciary antitrust subcommittee will be held on Feb. 3, a spokesperson for Sen. Mike Lee (R-UT), confirmed. Lee is the chairman of the subcommittee, and Sen. Cory Booker (D-NJ) is the ranking member.[86]
On January 27, 2026, more than a dozen British politicians and former policymakers have called on the country's competition watchdog to launch a full review of Netflix's $83 billion bid for Warner Bros. Discovery.[87]
On January 28, 2026, Netflix‘s position as the clear market leader in premium streaming will result in stronger antitrust review of its proposed acquisition of WBD.[88]
On January 29, 2026, A coalition of indie filmmakers, theater operators and nonprofits has reportedly sent a letter to the National Association of Attorneys General (NAAG), asking state attorney generals to block Netflix’s accepted $82.7 billion acquisition of Warner Bros. Discovery’s studio and streaming businesses, citing antitrust concerns.[89]
Government and industry responses
Industry
Many theater-owners and exhibition-industry groups have expressed strong concern that the Netflix–Warner Bros. deal threatens the future of theatrical film distribution. Cinema United, one of the largest theater-owner trade associations, described the acquisition as an "unprecedented threat" to the global exhibition business. They argued that Netflix's historically streaming-first model may lead to fewer theatrical releases, reducing box-office revenue and endangering theaters, including small independent cinemas that are usually single-screen. Cinema United's leadership called on regulators to closely scrutinize the transaction, warning that a consolidation of this magnitude could "impact theatres from the biggest circuits to one-screen independents" worldwide and risk eliminating a significant portion of the annual domestic box office.[90][91]
The Directors Guild of America (DGA) reportedly expressed concerns over the Netflix–Warner Bros. merger, noting that a major consolidation could threaten competitive opportunities for talent and reduce diversification in studio and streaming-driven content.[92]
The Writers Guild of America (WGA) stated that the proposed Netflix–Warner Bros. merger "must be blocked", arguing that "the world's largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent."[93][91]
Actress Jane Fonda heavily pushed back against the Netflix–Warner Bros. deal. In a statement released through her organization Committee for the First Amendment, she called the deal "catastrophic" and urged the Department of Justice to review the deal.[94][95][96]
SAG-AFTRA expressed concern about the proposed Netflix–Warner Bros. transaction, stating that the deal "raises many serious questions about its impact on the future of the entertainment industry, and especially the human creative talent whose livelihoods and careers depend on it." The union emphasized that any merger must lead to "more creation and more production, not less", and that such work must occur "in an environment of respect for the talent involved." SAG-AFTRA noted that its final position will depend on a "complete and thorough analysis" of the proposal, with particular focus on jobs and production commitments, and unlike some other guilds, it has not yet called for the merger to be blocked.[97]
James Cameron publicly threw his support behind Paramount Skydance in its bidding war for Warner Bros. Discovery, claiming that a Netflix takeover "would be a disaster" for the studio's long-term creative future.[98] Cameron argued that Paramount's offer better protected WBD's legacy franchises, theatrical strategy, and filmmaker-driven culture, claiming the company had a proven track record of nurturing large-scale storytelling compared to Netflix's data-driven content model.[citation needed]
Roy Price wrote that an acquisition of Warner Bros. by Netflix could lead to fewer shows being made and "a narrower range of storytelling" with "decision making around one organization's or one individual's point of view".[99]
Consumer lawsuits
On December 8, a class-action lawsuit was filed against Netflix by an HBO Max subscriber residing in Las Vegas, Michelle Fendelender, who alleges that the proposed Netflix–Warner Bros. acquisition would reduce competition in the U.S. video on demand market.[100][101]
North American market share of each studio in 2024:[102]
A consortium of prominent film-industry figures, described as "concerned feature film producers", sent an anonymous letter to members of the U.S. Congress (House and Senate), urging lawmakers to publicly oppose the Netflix–WBD deal and to push for "the highest level of antitrust scrutiny." Among the arguments in the letter: concern that Netflix's ownership of WBD's vast film/TV library and its streaming platform could give it disproportionate influence over both content creation and distribution; this could reduce competition, suppress creative diversity, and concentrate decision-making power over production, release strategy, and distribution in a single company.[103]
U.S. Senator Elizabeth Warren described a potential Netflix–Warner Bros. merger as an "anti-monopoly nightmare." She expressed concern that such a deal could create a single large media company controlling nearly half of the streaming market, potentially leading to higher subscription prices, fewer consumer choices, and risks for American workers. Warren also criticized the antitrust review process under the Trump administration, urging the Justice Department to enforce U.S. antitrust laws fairly and transparently.[104] Warren separately criticized a possible Paramount–WBD deal as a "five-alarm antitrust fire".[105] U.S. Senator Mike Lee stated that the proposed Netflix–Warner Bros. merger raises "a lot of antitrust red flags" and said that a congressional hearing on the deal is "almost certain". Republican Senator Roger Marshall of Kansas and Representative Darrell Issa of California also urged U.S. antitrust authorities to closely scrutinize the proposed merger, arguing that it could result in fewer films being released in theaters.[106] A Netflix–Warner Bros. deal has raised concerns of job losses[107][108][109] with Representative Laura Friedman saying "Repeated consolidation in this industry has already cost so many film and television jobs, and any merger should be evaluated on its impacts on competition and employment".[110][111]
Despite the fact that Affinity Partners (one of the initial external financiers of the Paramount Skydance proposal) is owned by Jared Kushner,[112] President Donald Trump has stated that the Netflix acquisition proposal "could be a problem" because of the size of the combined market share, that he would be involved in the Netflix proposal's review process, and that he had not spoken to Kushner (his son-in-law) about the Paramount Skydance proposal.[113] Senior Trump administration officials had previously told CNBC that the administration viewed the Netflix acquisition with "heavy criticism."[114] According to the proposal's SEC filing, other external financiers of the Paramount Skydance proposal also include the sovereign wealth funds of Saudi Arabia, the United Arab Emirates, and Qatar, but because the sovereign wealth funds and Affinity Partners have agreed to forego governance rights and board of directors representation, the Paramount Skydance proposal will be outside of the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) to review.[112] In the same SEC filing, Paramount Skydance reported that Tencent had withdrawn its financing of their bid to also avoid a CFIUS review.[115] Affinity Partners withdrew its financing on December 16.[116]
When asked in the CNBC interview whether he thought Trump was more supportive of the Paramount Skydance proposal, David Ellison said, "What I would say is I'm incredibly grateful for the relationship that I have with the President, and I also believe he believes in competition."[125] Trump also previously arranged for Larry Ellison to acquire a sizable ownership share of TikTok as part of the enforcement of the ban-or-divestment law for foreign adversary controlled social media applications enacted in the United States in 2024.[120] As the Justice Department's Antitrust Division and the Federal Trade Commission (FTC) have overlapping jurisdiction in reviewing mergers and acquisitions for compliance with U.S. antitrust laws,[126][127] Paramount Skydance submitted required forms with both the FTC and the DOJ on December 8.[128]
Since Warner Bros Discovery is a publicly traded company, there is a large shareholder base. According to The Motley Fool, 71% of the company is owned by institutional investors, 23% by individual investors, and 6% by insiders. Throughout the bidding war, many shareholders have stated their positions.[129]
"The changes in Paramount’s new offer were necessary, but not sufficient," Harris Oakmark portfolio manager and Director of U.S. Research Alex Fitch said in an email to Reuters. "We see the two deals as a toss-up, and there is a cost to changing paths. If Paramount is serious about winning, they’re going to need to provide a greater incentive." The firm owns 4% of Warner Bros Discovery.[130]
Mario Gabelli (Founder & Chairman of GAMCO Investors) has indicated he is "highly likely" to tender his clients' shares in Warner Bros. Discovery to Paramount Skydance.[131] The firm has a non index institutional ownership of around 5%.[132][failed verification]
Regulatory and foreign responses
Due to the size of the acquisition, the deal is subject to review by competition authorities in major markets.[124][bettersourceneeded]
Netflix previously had limited presence in theatrical film distribution. With the acquisition of Warner Bros. Pictures, it would gain production studios and major film franchises, allowing it to distribute films in theaters and access properties like the DC Universe and Harry Potter, enhancing its position in theatrical and global film markets. Netflix has been trying to get into the video game industry for a long time. The company acquired indie studios and built a presence in mobile gaming, but never established a major footprint.[134] With this acquisition, Netflix would become a major player in the video-game industry through Warner Bros. Games, acquiring Warner Bros. Games studios including Rocksteady Studios, Avalanche Software, NetherRealm Studios, TT Games, and major franchises such as Hogwarts Legacy, Mortal Kombat, and the Lego games.[135][136] In December 2025, Netflix co-CEO Greg Peters stated that Warner Bros.'s video game properties were not of significant interest to the company, calling them "relatively minor".[137][138]
Paramount Skydance
Paramount Skydance's offer materials projected that a combined Paramount–Warner Bros. Discovery would generate approximately $70 billion in annual revenue, about $16 billion in EBITDA, roughly $10 billion in cash flow, and serve around 207 million streaming subscribers. The combined company would not only have the Warner Bros. film and television studios, its publishing and licensing divisions, DC Studios and DC Entertainment, HBO/HBO Max and its content libraries, but a wide portfolio of domestic and international television networks, including key brands such as Discovery, Cartoon Network, Adult Swim, Eurosport, TNT, TBS, TLC, Food Network and CNN as well as free-to-air networks in the United Kingdom and Europe and the combined company would have a massive broadcast rights portfolio to key sport leagues and sporting events across the United States and Europe, such as the NFL, UFC, the NHL, the PGA Tour, the Masters Tournament, NCAA, several UEFA events, the Olympics among others alongside Paramount's film and television studios, linear networks and its content library. The deal would also bring MTV, Nickelodeon, The Movie Channel, VH1 and Comedy Central reunited under common ownership with Warner after more than 40 years, as well as granting the Warner stakes on both The CW and Philo.[139]
Warner Bros. Pictures Domestic Distribution (North American exhibition)
Warner Bros. Pictures International Distribution (international distribution and production; most active in France, Germany, Italy, Spain, the United Kingdom, the Republic of Ireland, Poland, the Philippines, Japan, South Korea, Argentina, Brazil and Mexico)
↑Restrepo, Fernán; Subramanian, Guhan (April 2017). "The New Look of Deal Protection". Stanford Law Review. 69 (4): 1015. Archived from the original on February 21, 2018.
↑Goldsmith, Jill; Patten, Dominic; Johnson, Ted (September 11, 2025). "Paramount Exploring Bid For Warner Bros. Discovery". Deadline Hollywood. Penske Media Corporation. Archived from the original on September 11, 2025. Retrieved January 6, 2026.
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