Netflix vs. Paramount: The Epic Battle for Warner Bros.
January 24, 2026 – Hollywood is witnessing its biggest bidding war in history, and the stakes couldn’t be higher. Netflix and Paramount are locked in a fierce battle for Warner Bros. Discovery, with billions of dollars, iconic franchises, and the future of entertainment hanging in the balance.
The Deal That Could Reshape Entertainment
Netflix has revised its offer for Warner Bros. Discovery to an all-cash transaction valued at $27.75 per share, with a total enterprise value of approximately $82.7 billion, including debt. The streaming giant wants Warner Bros.’ film and television studios, HBO, and HBO Max to bring legendary franchises like Harry Potter, Game of Thrones, and DC Comics under one roof.
The original December deal was a mix of cash and stock. Netflix’s switch to all cash simplifies the transaction, provides greater certainty of value, and accelerates the path to a shareholder vote, potentially as early as April 2026.
Paramount Isn’t Backing Down
While Netflix looks like the frontrunner, Paramount Skydance is waging an aggressive hostile takeover attempt. The company offered $108.4 billion for the entire Warner Bros. Discovery company, including a personal guarantee of $40.4 billion in cash from tech billionaire Larry Ellison.
There’s just one problem: only 7% of Warner Bros. Discovery shareholders have accepted Paramount’s hostile offer, while 93% have rejected it. The WBD board has repeatedly called Paramount’s proposal “inferior” and cited concerns about Paramount’s heavy debt load; the combined company would carry $87 billion in debt.
Paramount isn’t giving up. The company has filed lawsuits demanding information about the Netflix deal, launched a proxy fight to nominate its own board directors, and sent letters to Washington calling Netflix’s acquisition “presumptively unlawful.”
The Political Wild Card: Trump and CNN
Things got even stranger when President Donald Trump shared a One America News article demanding that Netflix be stopped from purchasing Warner Bros. Discovery. Trump has publicly stated that CNN “should be sold” in any deal, adding an unpredictable political dimension to what was already a complex business transaction.
Netflix co-CEO Ted Sarandos responded with obvious confusion: “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.”
What Netflix Gets (And What It Costs)
If the deal closes, Netflix would acquire:
- Warner Bros. film and television studios
- HBO and HBO Max streaming service
- Iconic franchises: DC Comics, Harry Potter, The Lord of the Rings, Game of Thrones
- A century of film history and content library
- Theatrical distribution capabilities
Warner Bros. Discovery’s cable networks, including CNN, would be spun off into a new publicly traded company called Discovery Global, expected to be completed
in six to nine months.
This deal represents a dramatic shift in Netflix’s strategy. “I want to win the opening weekend. I want to win the box office,” Ted Sarandos told The New York Times—a stunning reversal for a company that once dismissed theaters as unnecessary.
Sarandos has committed to a 45-day theatrical window for Warner Bros. films if Netflix acquires the studio, up from an initial 17-day proposal. It’s a compromise that signals Netflix’s willingness to work with traditional Hollywood distribution models.
The streaming giant reported 18% year-over-year revenue growth and now has over 325 million subscribers. Streaming captured a record 47.5% of total television viewing in December, according to Nielsen, the highest share ever recorded.
The Investment Banks Are Winning Either Way
While Netflix and Paramount duke it out, JPMorgan and Allen & Company stand to make $90 million apiece for their work as advisers to Warner Bros. Discovery. JPMorgan earned even more financing a $17.5 billion bridge loan that allowed WBD to separate its cable networks from its studio division.
Regulatory Nightmare Ahead
Netflix co-CEO Ted Sarandos plans to testify in February at a U.S. Senate committee hearing examining the proposed acquisition. The scrutiny is intense this would be one of the largest media mergers in history.
The Writers Guild of America is demanding the merger be blocked on antitrust grounds. Industry insiders worry about job losses, lower wages, and reduced opportunities for independent creators. If regulators block the deal, Netflix would owe a $5.8 billion breakup fee.
Why Some Think This Is a Mistake
Not everyone believes Netflix is making the right move. “Netflix’s simplicity was its superpower,” said Matthew Dolgin, media analyst at Morningstar. The concern isn’t that Netflix will lose its streaming dominance, but that it’s complicating a model that succeeded precisely because of its focus.
Netflix built its empire by being different from traditional media companies. Now it’s acquiring one of the oldest studios in Hollywood, committing to theatrical windows, and entering businesses it once disrupted. The risk is real: trying to be everything to everyone rarely works.
What Happens Next?
The shareholder vote could happen as early as April 2026. Until then, expect:
- Continued Paramount pressure and legal maneuvering
- Regulatory hearings and antitrust scrutiny
- Potential political interference from the Trump administration
- Industry lobbying for and against the deal
For Warner Bros. Discovery shareholders, the choice seems clear: 93% have already rejected Paramount’s offer. The Netflix deal offers more certainty, less debt, and a cleaner structure.
For Hollywood, the implications are staggering. If Netflix absorbs Warner Bros., the streaming wars won’t just be over—they’ll have been won decisively. The company that killed Blockbuster would own Batman, Harry Potter, and a century of cinematic history.
The only question left: will regulators let it happen?