Netflix announced last Friday its intention to acquire Warner Bros., HBO and its streaming business HBO Max, in an $82.7 billion deal. But that deal is being contested by Paramount, which announced Monday that it was launching a hostile bid to acquire Warner Bros. Discovery.
Netflix's deal would see the streaming giant acquire the movie studio, HBO and streaming arm of Warner Bros. Discovery, following the latter company's earlier announcement this year that it's splitting in two. WBD is expected to spin off its Discovery business in the third quarter of 2026.
Paramount's takeover attempt offers Warner Bros. investors $30 a share (as opposed to Netflix's $27.5 a share), totaling $108 billion. Unlike Netflix's agreement, Paramount's bid would see it purchase the entirety of Warner Bros. Discovery in an all-cash transaction.
In its statement to investors, Paramount said its private offer (one of six) to WBD is now being taken "directly to WBD shareholders and its board of directors to ensure they have the opportunity to pursue this clearly superior alternative."
Since the Netflix and Paramount announcements, Warner Bros. Discovery stock has risen dramatically, closing out the week at $29.98 a share on the Nasdaq, after growing by around 35% in value since last month.
Netflix's offer to acquire Warner Bros.
By acquiring Warner Bros., HBO and HBO Max, Netflix would not only boost its own catalog of shows and films -- which already includes big hitters such as Stranger Things, Wednesday and Squid Game, with Warner Bros. properties Harry Potter, Friends and Batman -- but will also see it play host to HBO shows, including Game of Thrones and Succession.
"Our mission has always been to entertain the world," said Netflix co-CEO Ted Sarandos in a statement. He promised the deal would bring audiences "more of what they love and help define the next century of storytelling."
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Greg Peters, co-CEO of Netflix, praised WBD's longevity and executive team, adding, "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."
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