On 5 December 2025 Netflix agreed to buy Warner Bros.’ studios and HBO Max for $27.75 a share. Three days later Paramount launched a hostile bid of $30 a share for the whole company.
Warner Bros. Discovery announced on 5 December 2025 an agreement to sell Netflix its film and television studios and its HBO Max platform, which would first be separated from its cable channels. Netflix offered $27.75 a share, in cash and stock, valuing the equity at about $72 billion and the whole, including debt, at about $82.7 billion.
The counterbid
On 8 December Paramount Skydance, controlled by the Ellison family, launched a hostile tender offer directly to shareholders: $30 a share in cash for the whole company, including cable channels such as CNN, TNT and Discovery, valuing it at about $108 billion including debt. Paramount had lost the earlier auction and argued that its offer was better for shareholders and easier to clear.
Warner Bros. Discovery’s board recommended rejecting it as inferior and heavily reliant on debt, and Netflix later switched its offer to all cash. The battle, set to run for months, was left in the hands of shareholders and of competition authorities in the United States and Europe.
Why it matters
Warner Bros. is one of Hollywood’s great studios, with franchises such as Harry Potter, DC Comics and Game of Thrones, and one of the world’s most valuable catalogues. Its purchase by Netflix would further concentrate the market for streamed films and series, and it opened a debate on competition, the future of cinemas and creators’ rights.
The deal also reflected the shift of power in the industry: the platform that began as a DVD rental service was preparing to buy one of Hollywood’s oldest studios.
What to bear in mind
For investors, large mergers with several suitors cause sharp share-price swings and long periods of regulatory uncertainty. Anyone holding shares in the companies involved, or funds with large positions in them, should follow the terms and timetables of each offer. Ask your adviser before making decisions.
In entertainment, as in other businesses, a catalogue built over a century remains the most coveted asset.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
