Warner Bros Discovery agreed to sell its iconic studio and streaming assets to Netflix for $72 billion on Friday — capping a multi-week bidding war that included Paramount Skydance and Comcast. The agreement has already faced political pushback with several members of Congress dubbing it an antitrust “nightmare” for consumers and creatives. Shareholders are yet to vote on the Netflix deal and US Department of Justice officials also highlighted its ‘anti-competitive’ nature. Paramount is now likely to make a last-ditch acquisition attempt by appealing directly to the shareholders through a hostile takeover offer.
Paramount mulls hostile bid
According to a CNBC report, Paramount lawyers had sent a letter to Warner Bros Discovery earlier this week claiming that the sale process had been rigged in favour of Netflix. It accused WBD of failing to consider its all-cash $30 offer and announcing a predetermined outcome. People familiar with the matter told the publication that Netflix had made an initial bid of $27 per share — higher than the Paramount offer at the time. The company is reportedly weighing the possibility of directly approaching shareholders with an improved bid — perhaps even higher than the $30-per-share offer submitted recently. Netflix would get a chance to match the figure in such a scenario.
Paramount Skydance had been the presumed frontrunner for quite some time — making a series of unsolicited bids to acquire all of Warner Bros Discovery, including the cable TV assets slated for a spinoff. Company CEO David Ellison also enjoys close ties with US President Donald Trump. Multiple reports have also flagged the ‘deep pockets and political clout’ of his father Larry Ellison amid monopoly concerns.
What is the Warner Bros – Neflix deal?
The streaming giant concluded a deal to buy the TV, film studios and streaming division of Warner Bros Discovery for $72 billion on Friday. Netflix will gain access to a trove of content — built over the last century — including marquee franchises such as “Game of Thrones” and “Harry Potter,” and DC Comics’ roster of superheroes, including Batman and Superman. But the agreement is likely to face heavy antitrust scrutiny in Europe and the US as it would give the world’s biggest streaming service ownership of a rival that is home to HBO Max and boasts nearly 130 million streaming subscribers. Some members of Congress also said a Netflix–Warner Bros Discovery deal could harm consumers and Hollywood — even before the bids were in.
Each Warner Bros Discovery shareholder will receive $23.25 in cash and about $4.50 in Netflix stock per share under the deal — valuing Warner at $27.75 a share, or about $72 billion in equity and $82.7 billion including debt. It also represents a premium of 121.3% to Warner Bros Discovery’s closing price on September 10, before initial reports of a possible buyout emerged.
The deal is expected to close after Warner Bros Discovery spins off its global networks unit, Discovery Global, into a separate listed company, a move now set for completion in the third quarter of 2026.
Netflix has offered Warner Bros Discovery a $5.8 billion breakup fee, while Warner Bros Discovery would pay Netflix $2.8 billion if the deal collapses. Netflix said it expects to generate at least $2 billion to $3 billion in annual cost savings by the third year after the deal closes.