Netflix has emerged as the winner in a competitive bidding process, securing Warner Bros. Discovery’s (WBD’s) streaming and movie studio businesses last week. The deal is valued at an equity price of $72 billion, equating to an estimated total enterprise value of $82.7 billion. This acquisition includes HBO and the HBO Max streaming service but excludes WBD's cable channels, which will be reorganized into a new entity known as Discovery Global. Netflix expects this separation to be finalized by the third quarter of 2026.
However, Paramount Skydance remains undeterred in its ambitions to acquire WBD in its entirety, including the soon-to-be independent Discovery Global. Paramount, who previously raised concerns about the fairness of the bidding proceedings, issued a statement declaring its intent to continue its pursuit. According to the statement: "Despite Paramount submitting six proposals over the course of 12 weeks, WBD never engaged meaningfully with these proposals which we believe deliver the best outcome for WBD shareholders. Paramount has now taken its offer directly to WBD shareholders and its Board of Directors to ensure they have the opportunity to pursue this clearly superior alternative."
Paramount's bid is valued at $108.4 billion, translating to $30 per share, offering a notable 139 percent premium over WBD’s stock price of $12.54 as of September 10, 2025. It is believed that WBD disregarded Paramount's offer primarily due to its strategic preference for the long-term advantages of splitting into two distinct entities over wholly selling out to Paramount.
David Ellison, CEO and chairman of Paramount, criticized the Netflix agreement, arguing it might negatively impact WBD’s shareholders due to uncertainties related to the future trading potential of WBD’s Global Networks linear cable business.
Reacting to these developments, Netflix's co-CEO, Ted Sarandos, commented that Paramount’s hostile takeover bid was “entirely expected.”