Netflix announced on Friday that it will acquire Warner Bros, HBO and its streaming business HBO Max, in an $82.7 billion deal. That deal is now being contested by Paramount, which confirmed today that it’s launching a hostile bid to acquire Warner Bros. Discovery.
Netflix’s deal would see the entertainment giant acquire the movie studio, HBO and streaming arm of Warner Bros. Discovery, following the latter company’s earlier announcement this year that it’s splitting in two. WBD is expected to spin off its Discovery business in the third quarter of 2026.
Paramount’s takeover attempt offers Warner Bros.’ investors $30 a share (as opposed to Netflix’s $27.5 a share), totaling $108 billion. Unlike Netflix’s agreement, Paramount’s bid would see it purchase the entirety of Warner Bros. Discovery in an all-cash transaction. In its statement to investors, the company said its private offer (one of six) to WBD is now being taken “directly to WBD shareholders and its Board of Directors to ensure they have the opportunity to pursue this clearly superior alternative.”
By acquiring Warner Bros., HBO and HBO Max, Netflix not only will boost its own catalog of shows and films — which already includes big hitters such as Stranger Things, Wednesday and Squid Game, with Warner Bros. properties Harry Potter, Friends and Batman — but will also see it play host to HBO shows including Game of Thrones and Succession.
“Our mission has always been to entertain the world,” said Netflix co-CEO Ted Sarandos in a statement. He promised the deal would bring audiences “more of what they love and help define the next century of storytelling.”
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Greg Peters, co-CEO of Netflix, praised WBD’s longevity and executive team, adding, “With our global reach and proven business model, we can introduce a broader audience to the worlds they create — giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
The big question for most Netflix subscribers will likely be how the acquisition might affect monthly subscription costs. Netflix is our top pick of the many streaming services you have available to you, but one of the few downsides we note in our review is that the premium plans are already on the pricey end of the spectrum.
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It’s too early to say what the knock-on impact on pricing might look like, but streaming services are getting increasingly expensive, and this acquisition is unlikely to reverse that trend. While it’s unclear whether Netflix plans to merge both streaming apps into a single offering, the company said that the agreement will enable it to “optimize its plans for consumers, enhancing viewing options and expanding access to content.”
The deal, which values Warner Bros. Discovery at around $72 billion after debt, was unanimously approved by the boards of both companies. It’s expected to allow Netflix to grow its production capacity for original titles and invest in more original content. Netflix said that it expects to maintain Warner Bros.’ current operations, and still expects theatrical releases for films (like The Batman Part 2) to be business as usual.
What’s next if the transaction clears any regulatory hurdles? “If this deal makes it through regulatory approval, Netflix will cement itself as the Goliath of streaming services now with the combined weight of HBO Max and the content studios behind it all,” said Forrester VP Research Director Mike Proulx. “This deal changes the calculus of the streaming wars, representing a seismic shift in the entertainment industry.”
President Trump has expressed concern about the Netflix-Warner Bros merger, stating on Sunday, “It is a big market share. It could be a problem.” Trump confirmed that Netflix co-Chief Executive Officer Ted Sarandos had recently met with him to lobby for the acquisition.
