In September, rumors swirled that Paramount Skydance and the Ellisons were looking to purchase Warner Bros. Discovery. WBD was in the process of splitting back into two distinct companies. From there, more suitors entered the picture with Netflix and Comcast both stepping in with their own proposals. Netflix has (currently) won the process, announcing in a press release the details of the deal.
Warner Bros. Discovery and Netflix have announced an agreement that would see a deal involving cash and stock, at $27.75 per WBD share ($23.25 in cash and $4.50 in shares of Netflix stock per WBD share). The total deal is about $82.7 billion and expected to close in the third quarter of 2026.
In the announcement, Netflix highlighted franchises and shows such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, and the DC Universe. It also highlighted Casablanca, Citizen Kane, Harry Potter, and Friends. It was believed Netflix was pursuing the purchase as its future was unclear when it came to franchises it controls. Stranger Things‘ final season recently released, and beyond K-Pop Demon Hunters, big blockbusters are elusive. WBD would give Netflix a deep bench to add to its streaming platform as well as spin out into new films and series.
The deal is far from done as it would need regulatory approval and there’s already alarms being raised with the word “monopoly” being thrown around. It would have Netflix acquiring HBO Max, which is reported as the third largest streaming service, with Netflix being first. In the announcement it mentioned how the new properties would be available to Netflix subscribers playing into rumors that Netflix would fold HBO Max into its streaming service, consolidating that market and leaving fewer choices for consumers.
While it would “save” consumers money in that they wouldn’t need to purchase two streaming services, it would also be a “captured” audience allowing to Netflix to eventually raise their prices claiming the “value” with the added content. Netflix increased the cost to its subscriptions earlier this year after raising prices in 2024 when it eliminated its cheapest ad-free option.
Warner Bros. Discovery’s global networks division, Discovery Global, would still spin out into a new publicly-traded company, so Netflix’s deal isn’t for all of WBD.
While the boards of both Netflix and WBD voted “unanimously” to approve the deal, the Ellisons and Paramount Skydance are not giving up and have been going with a full court press to sour the deal.
Paramount claimed the deal was unfair and tilted towards Netflix:
…sales process has been tainted by management conflicts, including certain members of management’s potential personal interests in post-transaction roles and compensation as a result of the economic incentives embedded in recent amendments to employment arrangements.
The deal is the best of the worst. It consolidates the media landscape further, always a loss for consumers and individuals in the industry who will have fewer choices and options. Mergers tend to lead to mass layoffs to help with savings, decreasing the debt load by decreasing operational costs.
But, there are some bright spots. DC Comics, which would be picked up by Netflix in the deal, is likely safter with Netflix in charge. Netflix has made it clear it’s looking for properties and franchises as its current landscape of original movies and series is unclear. DC Comics, its characters, and newly launched revamped movie universe, provides endless stories and characters to adapt for television and films.
In 2017, Netflix bought Mark Millar‘s Millarworld in hopes of turning it into a franchise machine with films, series, and kids’ shows exclusively on the streaming platform. The result has been a trickle of projects and I think most would agree the deal was a bust for Netflix. While Millarworld comics were originally released by Image, in 2023 they shifted over to Dark Horse where releases have been steady. With the acquisition of DC, it’s not a stretch to see the imprint moving again to that publisher. Netflix and Dark Horse have had a two way partnership. They extended an agreement that granted the streaming service priority rights to intellectual property from Dark Horse. While a few properties were mentioned, little has come of it post the announcement and a few projects were released under a previous agreement. However, Dark Horse has been the publisher of comics based on Stranger Things which streams on Netflix. It’s unknown what the future holds when it comes to that and Netflix owning DC could change things in the far future.
Netflix has also been at arms length when it comes to theaters. It’s unclear how this deal will impact that after the deal closes and obligations wrap up. Netflix has had limited theater engagements and then had those films only be available on their platform. But, they’ve also had a property like K-Pop Demon Hunters blow up on their platform and then release in theaters for limited engagements. Things will shift if this deal closes but it’s unknown exactly how. Theaters will likely be a loser in the deal. Netflix will likely keep what it thinks will be a draw for subscribers but go to theaters for films it’s less sure about and will need theatrical releases to help cover costs.
In a win for consumers, it prevents the Ellisons from bringing their current dark cloud to more media. Under their recent purchase, they have quickly tilted the media to a more conservative bent including appointing controversial individuals to oversee news divisions like CBS. Bari Weiss is now the editor-in-chief of CBS News and her conservative media company The Free Press was purchased by Paramount Skydance in a $150 million deal. There was concern the Ellisons taking over WBD would tilt news channels such as CNN as well as other media channels with Weis overseeing them as well.
Paramount appointed Trump’s former ambassador to Japan and conservative Kenneth Weinstein to oversee CBS News as “an independent, internal advocate for journalistic integrity and transparency, reviewing concerns raised by employees and viewers, addressing questions about news coverage, and upholding the organization’s longstanding commitment to accuracy and accountability.” That appointment was part of the agreement from Trump’s FCC to approve the Skydance and Paramount merger. They also agreed to pay $16 million to Trump’s foundation to settle a lawsuit he brought against the company last year. The company is also under fire for agreeing to provide free airtime to Trump. There’s also the canceling of The Late Show With Stephen Colbert which is believed to have been done to appease the Trump administration.
The Netflix WBD acquisition will need to get approved by the Trump administration. That might be difficult. Netflix gaining HBO Max will raise concerns of consolidation in the streaming market. The Ellisons could also go scorched earth leaning into their contacts in the Trump administration which they are very friendly with and throw a wrench into the process. Still, Netflix has deep pockets and could push back.
