Netflix has pulled off a blockbuster deal that could reshape Hollywood, agreeing to buy Warner Bros. Discovery’s studio and streaming business in an all-cash purchase worth $27.75 a share. As Bloomberg’s Lucas Shaw reports, Warner Bros.’ board has already given unanimous approval, and shareholders are expected to vote on the deal within weeks. That means Netflix, the streaming titan once dismissed as the disruptor, may soon become the establishment itself.
Paramount’s attempt to outmaneuver Netflix has mostly backfired. Shaw notes that while Paramount “did a good job of annoying” both Warner Bros. and Netflix, its moves did little more than push Netflix to make the entire offer in cash. That was the only change that stuck. Could shareholders still reject Netflix’s deal? Technically yes. But practically, Shaw calls that a “long shot.”
What happens to Paramount now? Shaw lays it out bluntly: it can raise its bid or rely on government regulators to block the sale. Paramount, now controlled by David Ellison and backed by his billionaire father Larry Ellison, still thinks its offer is superior. Yet the Warner Bros. board doesn’t agree. Will Ellison reach deeper into his family’s fortune? Or will he sit tight, gambling that Washington or Europe steps in to derail Netflix’s takeover?
Many in Hollywood are wondering if regulators will see Netflix’s growing dominance as a threat. “This deal will receive an extensive review in the U.S. and Europe,” Shaw explains. If regulators approve it, Paramount’s last card folds. Meanwhile, its old-school cable networks keep shrinking. The power struggle has a personal edge. Ellison bought Paramount knowing it was a sinking ship, betting he could rebuild it through scale. Owning Warner Bros. — with its vast film library and global streaming reach — would instantly change that. Without it, the younger Ellison faces, as Shaw puts it, “a years-long building effort with uncertain prospects.”
Shaw points to the irony of the situation: “Why aren’t more people talking about the absurdity of a $13 billion company trying a hostile takeover of a $71 billion business?” Good question. Especially when a $364 billion giant like Netflix already has a signed deal in hand. Paramount has tried a legal angle too, filing a Delaware lawsuit demanding Warner Bros. explain how it values its assets. Shaw calls it a “low-stakes fight.” Even a win wouldn’t hand Paramount the company. As one executive put it, “It’s window dressing.”
What about politics? Paramount insiders see themselves as Washington’s preferred option. Some still hope that Trump’s allies or European regulators will balk at giving Netflix control of HBO and CNN. But that’s no sure thing. Shaw notes that even if antitrust forces push Netflix to sell off parts of its business, it’s unlikely to part with HBO’s core library. Maybe some small concessions, but not the crown jewels.
Then there’s Netflix co-CEO Ted Sarandos, who promises to keep Warner Bros. films in theaters for at least 45 days before streaming them. Should we take him at his word? Shaw believes Netflix will honor existing contracts for now but warns, “How long they will remain committed to theaters is a guess.” Netflix has often said one thing and done another.
The bigger question may be why this merger matters at all. After all, who cares who owns Hollywood studios anymore in the age of AI and on-demand everything? Shaw reminds readers why: “Warner Bros. is one of the most important companies of the last century.” From Casablanca and Bonnie and Clyde to Friends and ER, from CNN’s global newscasts to HBO’s prestige series, Warner Bros. helped define American culture. If that legacy becomes another Netflix algorithm, what does that say about where Hollywood is heading?
Netflix’s move into gaming could benefit from Warner Bros.’ video game unit, but Shaw tempers expectations. “Useful but not transformational,” he says. Both companies have struggled in that space, and it’s unclear whether combining forces will change that.
The deal also piles stress on Hollywood’s unions. Writers, actors, and technicians who just weathered a strike over AI and residuals now face more uncertainty. Shaw reports that “pretty much everyone would rather nobody buy Warner Bros.” But in today’s industry, money talks louder than creative fear.
If this sale goes through, one thing is clear: Netflix, once the scrappy underdog, will become the biggest studio in the world. And for a business built on stories, that’s its own Hollywood twist. As for Paramount? Maybe the Ellisons will find another empire to chase. Maybe not. The clock is ticking.
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