Netflix Acquires Warner Bros. Discovery Film and Television Studios for $72 Billion

By John Pranay (Editor)

A massive deal in the entertainment industry has sent shockwaves globally, with Netflix agreeing to acquire Warner Bros. Discovery's film and television studios, including its namesake Warner Bros. studios and its film and television studios HBO and HBO Max, for $72 billion. The acquisition has sparked a bidding war, with Paramount Skydance launching a hostile, all-cash tender offer for Warner Bros. Discovery at $30 per share, valuing the bid at approximately $108.4 billion. The deal has raised concerns among Hollywood union leaders, who fear it will reduce competition and lead to job losses.

The conflict began in early December when Netflix announced its plans to acquire Warner Bros. Discovery's film and television studios. The deal was valued at $72 billion, with Netflix agreeing to pay Warner Bros. Discovery $27.75 per share. However, Paramount Skydance quickly responded with a hostile bid, offering $30 per share for Warner Bros. Discovery. The two companies are now engaged in a bidding war, with Netflix facing regulatory risks and potential pressure on its valuation. The deal has also raised concerns among Hollywood union leaders, who fear it will reduce competition and lead to job losses.

• June 2025: Netflix shares are down about 29% from the end of June.

• Early December 2025: Netflix announces its plans to acquire Warner Bros. Discovery's film and television studios.

• December 2025: Paramount Skydance launches a hostile, all-cash tender offer for Warner Bros. Discovery at $30 per share.

• Present day: The bidding war between Netflix and Paramount Skydance continues, with regulatory risks and potential pressure on Netflix's valuation.

The acquisition of Warner Bros. by Netflix is not the first major deal in the entertainment industry. In 2022, Amazon purchased MGM for an undisclosed sum. Netflix has historically avoided acquisitions, instead focusing on building new brands such as Stranger Things and Squid Game. However, the acquisition of Warner Bros. would be a significant move for the company, bolstering its library and saving expensive licensing costs.

The acquisition of Warner Bros. by Netflix has significant implications for various stakeholders, including Hollywood union leaders, investors, and consumers. Hollywood union leaders are concerned that the deal will reduce competition and lead to job losses, while investors are watching the bidding war between Netflix and Paramount Skydance. Consumers may also be affected, as the deal could lead to changes in the way content is distributed and consumed.

The acquisition of Warner Bros. by Netflix is a significant move in the entertainment industry, with implications for the global box office and the future of filmgoing. The deal has raised concerns among Hollywood union leaders, who fear it will reduce competition and lead to job losses. However, the deal also presents opportunities for Netflix to expand its library and save expensive licensing costs. The bidding war between Netflix and Paramount Skydance will continue to be closely watched, with regulatory risks and potential pressure on Netflix's valuation.

This deal suggests that the pace of consolidation in the entertainment industry is accelerating, with major players like Netflix and Paramount Skydance engaging in a bidding war for Warner Bros. Discovery. This trend is likely to continue, with smaller companies being acquired or merged with larger ones. However, this also raises concerns about the impact on competition and job losses in the industry. Crucially, this overlooks the potential benefits of consolidation, such as increased efficiency and cost savings. As the deal continues to unfold, it will be interesting to see how the regulatory environment and consumer sentiment evolve.

Assessment: Neutral.

1. Down 29% Since June, Is Netflix Stock a Buy? — https://www.aol.com/articles/down-29-since-june-netflix-172600579.html

2. As Netflix and Paramount circle Warner Bros., Hollywood unions voice alarm — https://www.seattletimes.com/business/as-netflix-and-paramount-circle-warner-bros-hollywood-unions-voice-alarm/

3. Is Netflix out to kill global cinema? — https://www.thehansindia.com/business/is-netflix-out-to-kill-global-cinema-1031008

Methodology: This analysis combines real-time data aggregation from manually selected global sources with advanced AI synthesis, engineered to provide neutral and data-driven insights.