Netflix's plans to acquire Warner Bros will not affect users' viewing experience anytime soon, the streaming giant informed more than 300 million subscribers on Monday. The acquisition for nearly $83 billion would bring Warner Bros' film and TV studios, along with HBO and HBO Max, under Netflix's umbrella.
“Nothing is changing today,” Netflix said in a late-night email to subscribers. “Both streaming services will continue to operate separately. We have more steps to complete before the deal is closed, including regulatory and shareholder approvals…In the meantime, we hope you'll continue to enjoy watching as much as you want, whenever you want, all on your current membership plan.”
The announcement comes amid a fierce bidding war. Paramount Skydance, backed by the billionaire Ellison family, launched a hostile takeover bid at $30 per share, valuing Warner Bros Discovery at $108.4 billion including debt. Paramount said its offer was a “superior alternative” to Netflix, promising more cash upfront for shareholders and a higher likelihood of regulatory approval.
Known for brands such as CBS News, Nickelodeon, and Mission: Impossible, it has argued that a combined company would give it the scale to compete with rivals like Netflix and Disney.
If successful, the deal could give Paramount a larger box office share than Disney in North America.
Warner Bros Discovery, which carries approximately $35 billion in debt, has been navigating its fourth major reorganisation since 2000.
Netflix's acquisition would give it access to some of the world's most iconic franchises, including Harry Potter, Friends, The Big Bang Theory, Casablanca, Game of Thrones, and the DC Universe, complementing Netflix's own hits like Stranger Things, Wednesday, Squid Game, KPop Demon Hunters, and Bridgerton.
“We're committed to bringing you more great series, films, games and live programming,” Netflix's email read.
US President Donald Trump has said that Netflix's proposed acquisition “could be a problem,” citing potential competition concerns. “I'll be involved in that decision,” he said.
Paramount's bid includes high-profile partners such as Jared Kushner, Trump's son-in-law, alongside the Ellisons.
Amid escalating bids, Warner Bros Discovery shares rose more than 4 per cent on Monday, Paramount shares jumped 9 per cent, while Netflix shares dropped over 3 per cent.
