Warner Bros. shareholders confront a clash between Netflix’s $72 billion offer and Paramount Skydance’s $79.9 billion bid, setting the stage for a Hollywood reshuffle.
The Two Offers
Netflix is proposing a combination of cash and stock valued at $27.75 per Warner share, valuing the company at $72 billion excluding debt. The deal does not include Warner-owned networks such as CNN and Discovery.
Paramount Skydance is offering $30 per Warner share, or $79.9 billion in total. In addition to the cash offer, Paramount plans to acquire Warner’s cable assets and is urging shareholders to reject the Netflix bid.
Shareholder Deadline
Warner’s shareholders have until January 8, 2026 to vote on Paramount’s tender offer. Paramount’s bid follows six proposals submitted over a 12-week period, all of which were rejected in favor of Netflix.
Regulatory and Political Landscape
Both offers will face intense scrutiny from U.S. regulators. On the Netflix side, regulators are concerned about the massive size of a combined Netflix-Warner subscription service, as Netflix is already the world’s largest streaming platform.
Paramount’s smaller streaming footprint may reduce concerns about subscription dominance, but regulators may still examine the merger of Paramount’s and Warner’s film and television studios.
Trump’s Involvement
President Donald Trump has weighed in, saying the Netflix offer “could be a problem” because of the size of the potential audience. He has stated he will be involved in deciding whether the federal government should approve the deal.
Analyst Perspective
Matthew Dolgin, senior equity analyst at Morningstar, noted that many unknowns remain, including whether Netflix will sweeten its bid. He said, “With Paramount now also being involved formally with an offer to shareholders, it’s even more likely to us that Warner gets acquired, because it’s no longer a single decision that may or may not hinge on regulatory approval,” he said.
Industry Consolidation Context
Warner Bros. Discovery was created in 2022 when AT&T spun off its WarnerMedia operations and merged them with Discovery Inc. Earlier, Amazon announced a purchase of MGM, and Disney acquired Fox’s entertainment service in 2019. This pattern of media acquisitions reflects a broader trend of consolidation in the streaming wars.
Key Takeaways
- Netflix offers $27.75 per share, valuing Warner at $72 billion, excluding debt.
- Paramount offers $30 per share, totaling $79.9 billion and includes a cable assets purchase.
- Shareholders must vote by January 8, 2026, and regulators will scrutinize both deals.
The outcome of Warner’s shareholder vote and regulatory approval will shape the future of Hollywood’s major studios and streaming platforms.
