On December 4th 2025, Netflix and Warner Bros. Discovery entered negotiations that would see the historic movie studio acquired by the streamer. It was a deal that many in Hollywood dreaded for the potential implications to the theatrical model. Now, two months later, that deal is in the dust following an aggressive hostile bid by Paramount to usurp Netflix’s offer with a better one. That effort has worked, with Netflix formally dropping out, leaving Paramount as the winner.
Netflix noted in a statement, “Netflix, Inc. today announced that it has declined to raise its offer for Warner Bros. Netflix had earlier received notice from Warner Bros. Discovery (WBD) that its Board of Directors has determined Paramount Skydance’s (PSKY) latest proposal constitutes a “Superior Proposal” under the terms of WBD’s existing merger agreement with Netflix.“
Netflix will receive a $2.8B breakup settlement as part of the deal.
Paramount’s deal and $30 share price was to acquire all of Warner Bros. Discovery, not just the studio and streaming assets as Netflix had offered.
This is quite the dramatic turn of events, one that I personally see as devastating to the country as a whole. It might not be that bad for the movie business, although that remains to be seen. Paramount’s David Ellison has openly attacked Netflix over the last few weeks, and courted the favor of the current Presidential regime to aid in striking down the deal. To curry that favor, Paramount, which recently merged with Skydance and acquired CBS, helped turn that once-great network into a right-wing outlet that spreads the White House’s message. Paramount’s chief desire in acquiring WBD was the acquisition of CNN, which many think will eventually go the way of CBS.
What does that mean for movies and television, though. We could see an exodus of talent away from Warner Bros. under the Paramount umbrella. There could also be an impact on James Gunn and Peter Safran’s DC Studios, but to what extent is unclear. Paramount acquires a studio that had multiple #1 hits in 2025 and crossed over $4B at the box office, the first ever to do it. WB films such as One Battle After Another and Sinners are both nominated for Best Picture at the Academy Awards, as well.
The Paramount/WBD merger still needs to get regulatory approval, but with Ellison now a Trump ally, it shouldn’t meet much resistance.
