Update: As of February 27, 2026, Paramount has entered into a definitive merger agreement to acquire Warner Bros. Discovery, with the transaction expected to close in Q3 2026.
The film and television industry is in the midst of a blockbuster showdown, with Netflix and Paramount battling for ownership of Warner Bros. Discovery (WBD) — a storied Hollywood institution behind classics like Casablanca and franchises like Batman and Superman — as well as HBO, the company’s crown jewel in prestige television.
What Are Netflix and Paramount Offering for Warner Bros.?
Netflix’s $82.7 billion offer is focused on acquiring Warner Bros.’ studios and HBO streaming service, with promises to find $2 to $3 billion in annual efficiencies without consolidating studios.
Paramount initially put in a $108.4 billion all-cash bid for the entirety of Warner Bros. Discovery, including CNN and other cable channels. Its bid projects up to $6 billion in cost synergies.
Netflix, the world’s top streaming platform, announced on December 5, 2025 that it would acquire Warner Bros. Discovery, focusing on the company’s streaming and studio divisions. The deal is valued at approximately $82.7 billion, with shareholders set to receive $23.25 in cash and $4.50 in shares of Netflix common stock for each share of WBD common stock.
On December 8, 2025, Paramount, a major Hollywood studio in its own right, launched a hostile takeover bid, urging shareholders to overrule the wishes of WBD’s board of directors. Valued at $108.4 billion, Paramount’s all-cash offer at initially $30 per share (and now $31 per share) aims to acquire the entire company — including its network television division, which is slated to be spun off by mid-2026.
For its part, WBD’s board of directors maintained its commitment to Netflix throughout the ordeal and unanimously rejected Paramount’s proposal on January 7, 2026, characterizing it as an “aggressive transaction structure” that would saddle the company with a significant amount of debt and telling shareholders to stick with the Netflix bid. But Paramount, which has made several attempts to buy Warner Bros. in the past, is betting that shareholders may be persuaded by its larger, all-cash offer. The company also argues that it’s at less risk of being rejected on antitrust grounds than Netflix.
Despite this formal rejection, this corporate tug-of-war may not be over just yet, especially as Netflix offered WBD a seven-day waiver (between February 17, 2026 and February 23, 2026) to consider a final deal offer from Paramount.
The standoff has also attracted the direct attention of President Donald Trump, who has personal ties to executives at Paramount. Still, he’s pledged to “be involved” in the regulatory fate of the transaction.
Could These Deals Pass Antitrust Regulations?
Television and film has been transformed by the internet and market consolidation over the years, raising ongoing questions about competition and control. Now, with Netflix and Paramount vying for ownership of Warner’s broad catalog of IP and services, the industry is facing what may be the most consequential media acquisition of the past decade — one that could reshape streaming, studios and the broader Hollywood landscape forever.
As of 2026, Netflix has over 300 million subscribers, whereas Paramount+ only has about 79 million. Therefore, if Netflix absorbs Warner Bros. (and by extension HBO), the streaming giant would gain immense market power. This could allow it to continue raising its subscription fees or low-ball filmmakers and showrunners.
Hollywood trade groups, including SAG-AFTRA and the Writers Guild of America, have opposed Netflix’s acquisition bid, saying any further consolidation would eliminate jobs, drive down wages and reduce the volume and diversity of content available to viewers. Politicians on both sides of the aisle have raised similar concerns. And shortly after the proposed acquisition was announced, an HBO Max subscriber filed a proposed class action lawsuit against Netflix, arguing that the deal would reduce competition in the streaming market.
While Paramount poses less of a threat from a streaming standpoint, its bid presents a different antitrust calculus. After all, a merger with Warner Bros. would combine two of the United States’ five major film studios. Such a consolidation could also reduce competition in the industry, potentially affecting how projects are financed and distributed. If WBD decides to reverse its rejection and side with Paramount in the end, it may come under regulatory scrutiny for its impact on the entire entertainment ecosystem, not just streaming.
Could This Change How Movies Are Released in Theaters?
Theater owners and other Hollywood trade groups have opposed Netflix’s acquisition bid, fearing that the streaming startup-turned-industry-heavyweight would either skip theatrical releases of Warner Bros. movies entirely or shorten the window between movies’ theatrical run and arrival on Netflix. They worry that if audiences know a movie will be available for streaming in just a couple weeks, they may skip going to the theater altogether.
Indeed, Netflix has released about 30 movies in select theaters this year, but it does not typically wait very long before streaming them. However, CEO Ted Sarandos has said the company will continue to release Warner Bros. movies in theaters, and that those movies will be available in theaters for exactly as long as they are today. Speaking at a conference on the day Paramount announced its latest bid, Sarandos said, “We didn’t buy this company (Warner Bros. Discovery) to destroy that value.”
Meanwhile, Paramount has said it would put out 30 movies in theaters per year, and would honor the traditional waiting windows before releasing them on streaming platforms. The company, which is one of Warner Bros.’ top rivals, also identified $6 billion in potential “synergy” opportunities from consolidating studios. Netflix has said it said it could find $2 to $3 billion in opportunities, but has pledged not to combine studios, as it lacks the same in-house production capabilities as Warner Bros.
Will HBO Max Get Combined With Netflix or Paramount+?
HBO’s streaming service has undergone several confusing rebrands since Warner’s merger with Discovery in 2022, which left acclaimed shows like Game of Thrones, The Sopranos and The Wire drowned out by a sea of reality TV content from Discovery properties.
Netflix told subscribers in a December 6 email that its content would remain separate from HBO and Warner Bros. content — at least until the transaction closes. Netflix might eventually offer Warner Bros. content on its streaming service, but it’s unclear whether it would keep the HBO app or what the pricing structure would be for the additional content.
Nearly half of HBO Max users also subscribe to Netflix, according to analytics firm Antenna. Sources familiar with the Netflix deal told Reuters that these dual subscribers could save money under a deal where the two streaming services are bundled, but the details have not been announced.
What Does Trump Have to Do With This?
Paramount’s acquisition bid is personal to President Trump. According to a regulatory filing, one of the investors behind the deal was Affinity Partners, a private equity firm led by Trump’s son-in-law, Jared Kushner — though the company pulled out of the bid about a week later.
Trump also has deep ties to Larry Ellison, the head of Oracle, which the president has tapped to manage TikTok’s U.S data and algorithm and partnered with on a deal to grow America’s AI infrastructure. Ellison’s son, David Ellison, has been the chairman and chief executive of Paramount since August 2024, when his company, Skydance Media, purchased Paramount for $8 billion. Since then, Paramount Skydance has made six unsuccessful offers to purchase Warner Bros., claiming that WBD’s board of directors “never engaged meaningfully” with any of its proposals.
Interestingly, when Skydance bought Paramount, it also acquired pro-Israel, “anti-woke” publication The Free Press and hired its founder, Bari Weiss, to lead CBS News. Since Paramount’s offer would include the acquisition of Warner’s cable division, which includes CNN, some worry the company might try to influence the editorial direction of CNN, an outlet Trump has repeatedly criticized as “fake news.”
Trump himself also appears to be actively involved in this saga. He reportedly talked with David Ellison at the Kennedy Centers Honors ceremony hours before Paramount’s hostile takeover was announced, and he told reporters that night that he would “be involved in the [Netflix] decision.” While he did not take a stance on Netflix’s proposal, he noted that the company has a “very big” market share, which he said “could be a problem” if they were to merge with Warner Bros..
Netflix- and Paramount-Warner Bros. Deal Timeline
Below is a timeline of the most notable developments in the bidding war between Netflix and Paramount over Warner Bros. Discovery.
Warner Bros. Stockholders Approve Merger Agreement With Paramount (April 2026)
Warner Bros. Discovery stockholders overwhelmingly voted to approve the company’s merger agreement with Paramount at an April 23, 2026 meeting. Leadership described the vote as a key milestone toward completing the merger transaction, with WBD CEO David Zaslav noting the deal’s potential to “deliver exceptional value” to stockholders. The transaction is expected to close in the third quarter of 2026, pending final regulatory clearances and customary closing conditions.
Paramount to Merge Paramount+ and HBO Max (March 2026)
Following the news that Paramount had agreed to acquire Warner Bros. Discovery, Paramount CEO David Ellison announced during a call with investors that the company will merge the Paramount+ streaming service and WBD’s HBO Max service into a single, unified platform. However, Ellison reassured investors that HBO’s identity and creative vision as a studio will remain unchained, stating, “Our viewpoint is HBO should stay HBO.”
Paramount Enters Agreement to Acquire Warner Bros. Discovery (February 2026)
Paramount entered into a definitive merger agreement to acquire all of Warner Bros. Discovery for $31 per share in an all-cash transaction, giving WBD an enterprise value of $110 billion.
This transaction has been unanimously approved by the boards of directors of both companies and is expected to close in Q3 2026, following a vote in early spring of 2026. The newly merged company is expected to be “well positioned” to compete in the evolving entertainment industry, and is committed to producing a minimum of 30 theatrical films annually under the agreement.
Netflix Declines to Raise Offer for Warner Bros. Deal (February 2026)
Netflix has declined to raise its offer to acquire Warner Bros. Discovery after being notified that the WBD board of directors deemed a rival bid from Paramount to be a “Superior Proposal.” Netflix Co-CEOs Ted Sarandos and Greg Peters stated that while their initial deal would have created shareholder value, the price required to match Paramount’s rival offer is no longer financially attractive for the company. Netflix noted that the acquisition was a “nice to have” rather than a “must have” as the company continues to focus on organic growth.
11 U.S. State Attorneys General Urge Department of Justice to Review Netflix-Warner Bros. Deal (February 2026)
Eleven Republican U.S. state attorneys general formally urged the U.S. Department of Justice to conduct a thorough review of Netflix’s proposed acquisition of Warner Bros. Discovery’s studio and streaming assets. The officials expressed concerns that the merger could result in “undue market concentration,” potentially stifling competition, increasing prices and lowering reliability and innovation in the U.S. entertainment industry.
This effort was led by Nebraska attorney general Mike Hilgers and Montana attorney general Austin Knudsen, with other attorneys general involved from Alabama, Alaska, Iowa, Kansas, North Dakota, South Carolina, Tennessee, Utah and West Virginia.
WBD Board of Directors Determines Revised Paramount Proposal Could Be a “Company Superior Proposal” (February 2026)
The Warner Bros. Discovery board of directors determined that the revised acquisition proposal received from Paramount Skydance could reasonably be expected to lead to a “Company Superior Proposal” over its existing merger agreement with Netflix.
This determination allows the WBD board to further engage in discussions with Paramount to negotiate and evaluate if the revised offer — which includes an increased purchase price of $31 per WBD share in cash — ultimately provides greater value to shareholders than Netflix’s standing offer. In addition to the higher share price, the revised Paramount proposal features a $7 billion regulatory termination fee in the event the transaction does not close due to regulatory matters, and a commitment to pay the $2.8 billion termination fee WBD would owe Netflix if it exits its current agreement.
Warner Bros. Discovery Reopens Deal Talks With Paramount (February 2026)
Warner Bros. Discovery reopened talks with Paramount Skydance about a potential acquisition, securing a seven-day waiver from Netflix — from February 17, 2026 to February 23, 2026 — to negotiate a “best and final” Paramount offer. To incentivize WBD to move beyond its current agreement with Netflix, Paramount verbally informed the board of an increased $31-per-share price tag in its final offer. Paramount said it would also pay the $2.8 billion termination fee WBD would owe Netflix if that deal were to collapse, alongside paying a “ticking fee” of $650 million (at 25 cents a share) to Warner stakeholders starting in January 2027 for each quarter the deal has not closed.
While the WBD board continues to unanimously recommend the Netflix deal ahead of a March 20, 2026 shareholder vote, this negotiation window allows WBD to consider Paramount’s hostile bid and determine if it can surpass Netflix’s offer.
Netflix and Warner Bros. Discovery Attend Antitrust Hearing, Netflix Maintains Its Platform Has No Political Agenda (February 2026)
On February 3, 2026, the U.S. Senate Judiciary Subcommittee on Antitrust held a hearing — featuring witnesses Ted Sarandos (co-CEO of Netflix) and Bruce Campbell (chief revenue and strategy officer for Warner Bros. Discovery) — to examine the competitive impact of Netflix’s proposed $82.7 billion acquisition of WBD, and discuss concerns over market consolidation, consumer pricing and theatrical distribution.
During the proceedings, Sarandos defended the merger as a way to create value for consumers. But he faced criticism from Republican senators like Josh Hawley and Eric Schmitt, who accused Netflix of promoting “woke” content and “transgender ideology.” Sarandos maintained that Netflix has no political agenda and operates with a wide variety of programming to meet diverse tastes, while critics argued that such ideological concerns are relevant to whether a single company should exert such significant cultural influence.
Netflix and Warner Bros. Amend Acquisition Deal to All-Cash Transaction (January 2026)
Netflix and Warner Bros. Discovery have amended their agreement to transition Netflix’s pending acquisition of Warner Bros. into an all-cash transaction, valued at $27.75 per share. This revised structure is designed to simplify the acquisition process, provide Warner Bros. stockholders with greater value certainty and accelerate the timeline for a stockholder vote regarding the transaction (expected by April 2026). The deal remains contingent on the planned separation of Discovery Global into a standalone company, after which Warner Bros. stockholders will retain shares in the new Discovery Global entity in addition to the cash consideration from Netflix.
Paramount Sues Warner Bros. (January 2026)
Paramount has intensified its pursuit of Warner Bros. by filing a lawsuit in Delaware against the company. The legal action seeks to compel WBD to disclose critical financial details regarding its merger agreement with Netflix — a deal Paramount claims is inferior to its own $30 per share all-cash offer. Paramount CEO David Ellison argued in a letter to shareholders that WBD has withheld information on the Netflix transaction, preventing shareholders from making an informed decision. To further advance its bid, Paramount also intends to nominate a slate of directors for WBD’s 2026 annual meeting to challenge the current board’s direction.
Warner Bros. Board Rejects Paramount’s Amended Bid (January 2026)
Warner Bros. Discovery’s board unanimously rejected Paramount Skydance’s amended $108.4 billion all-cash offer, labeling the proposal a risky leveraged buyout that would saddle the company with excessive debt and urging shareholders to stick with the existing Netflix merger agreement instead. The board reiterated that Netflix’s offer provides superior value and greater certainty for shareholders, and advised that they should reject the offer as well.
Paramount Increases Its Offer to Warner Bros. (December 2025)
Paramount Skydance amended its bid for Warner Bros., sweetening terms with an “irrevocable personal guarantee” backed by Oracle co-founder Larry Ellison to support $40.4 billion in equity financing and a higher reverse termination fee. However, the offer continued to fall short of meeting WBD’s criteria for a superior proposal.
Warner Bros. Advises Shareholders to Reject Paramount’s Initial Bid (December 2025)
WBD’s board of directors formally urged shareholders to reject Paramount’s unsolicited $108 billion bid, calling it inferior to the Netflix deal and fraught with financial risk. The board continued to back the Netflix merger agreement and highlighted concerns about Paramount’s financing structure.
Paramount Launches Hostile Takeover Attempt to Acquire Warner Bros. (December 2025)
Paramount Skydance launched an unsolicited tender offer directly to Warner Bros. shareholders, offering $30 per share in cash for the entire company — including CNN and Discovery networks — after Warner’s leadership disclosed its deal with Netflix.
Netflix Announces Agreement to Acquire Warner Bros. (December 2025)
Netflix announced that it would be acquiring Warner Bros. Discovery’s studio and HBO streaming business in a cash-and-stock transaction valued at approximately $83 billion, giving the streaming giant control over its film and TV production arm, as well as one of the most valuable content libraries in entertainment.
Frequently Asked Questions
What will this mean for my streaming subscriptions?
Paramount+ and HBO Max are set to become a singular streaming service and platform, following the merger of Paramount and Warner Bros. Discovery.
In the end, viewers may also see subscription price changes and shifts in where major franchises like DC, Harry Potter and Game of Thrones live.
Could the deal face antitrust challenges?
Yes. Netflix’s acquisition would make the largest global streaming platform even more dominant, raising concerns about higher prices for consumers, reduced competition for creators and fewer distribution options for studios. Paramount’s rejected December 2025 offer also raised red flags because it would consolidate two of the five major U.S. film studios, shrinking competition in theatrical distribution.
What role is Trump playing in this deal?
Paramount’s first offer was initially backed in part by Affinity Partners, a private equity firm run by Trump’s son-in-law Jared Kushner — though they’ve since dropped out of the deal. Trump is also friendly with David Ellison’s father, Oracle CEO Larry Ellison, a longtime ally whose companies have intersected with 2025 and 2026 tech policy. Trump has publicly commented on the matter, saying he intends to “be involved” in the decision and noting Netflix’s “very big” market share as a potential problem.
