In view of the Netflix–Warner Bros. Discovery acquisition deal, Paramount Skydance sent a letter to WBD’s lawyers expressing concerns about the fairness and adequacy of the bidding process, pointing out that Paramount has a credible basis to believe that the sales process has been tainted by management conflicts. According to a report in The Wall Street Journal, Paramount also sent a second letter to Warner Bros. Discovery CEO David Zaslav.
Indeed, Netflix has now struck an agreement to acquire Warner Bros. Discovery (including its film and TV studios, HBO and the HBO Max streaming service) in a cash-and-stock deal that values the business at $82.7 billion.
Under the terms of the transaction, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.50 in Netflix stock for each WBD share.
“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros.’ incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kane to modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”
“This acquisition will improve our offering and accelerate our business for decades to come,” continued Greg Peters, co-CEO of Netflix. “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”
The deal with Netflix is expected to close in 12-18 months after WBD completes the announced separation of its Streaming & Studios and Global Networks into two publicly traded companies in the third quarter of 2026, a transaction which is itself subject to regulatory and shareholder approvals.
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