Battle of the Film Giants: Will Netflix Acquire Warner Bros. and Create a New Film Monopoly?

On Friday, December 5, 2025, the world was shaken by the announcement that the streaming giant Netflix would acquire part of Warner Bros. Discovery (WBD). The companies agreed on an acquisition worth more than 82 billion USD (including debt). The transaction values the shares of the parent company Warner Bros. Discovery at almost 28 USD, with its shareholders receiving 23.25 USD in cash and the remaining 4.5 USD in Netflix stock. Back in June, WBD decided to separate its film studios and streaming platform, and it seemed that after six months of submitting offers, things were coming to an end. But only a few days passed and on December 8, Paramount Skydance came in with an even higher offer. The company is now offering 108 billion USD in cash, which amounts to 30 USD per share—more than the original 23.50 USD. While Netflix described its transaction as pro-consumer and pro-innovation, accompanied by various superlatives, Paramount instead called it inferior and said that customers should be given the chance at a better offer.

They Want More for More Money

The difference also lies in the fact that the deal between Netflix and WBD includes only certain brands—specifically Warner Bros. Studios, New Line Cinema, the HBO streaming platform, and the TNT Sports channel. The giant would thus expand its portfolio of hit series with famous classics such as Harry Potter, Friends, or DC Comics. On the other hand, Paramount wants to acquire the entire WBD business, including news and television networks such as CNN, TLC, Cartoon Network, and others. For Paramount, it would mean strengthening its position in the film market to compete with Netflix or Disney. For Netflix, the acquisition would mean an even stronger position, and its 300 million users (as of the end of 2024) would be joined by more than 120 million who pay for HBO Max. In both cases, we will wait several more months for the final outcome—at least until the end of 2026.

The Antitrust Office Could Change the Game

A potential merger of streaming platforms would create a monopoly controlled by Netflix, and according to research firm Sensor Tower, it could reach up to 56%. The final deal must therefore still go through antitrust authorities, who will have the final say. A breach of competition could also be an issue in the case of Paramount. Both giants publicly claim that their bids will pass the approval process quickly and easily, but neither has commented on what impact their actions would have on paying consumers. Analysts from Deutsche Bank also commented on Netflix’s acquisition and, according to CNBC, they see no major obstacles in the review process but add that they do not have the details that will interest regulators, and that the judge will be important as well.

Mixed Reactions

American president Donald Trump expressed his scepticism regarding the situation with Netflix, and other politicians joined him. As The Guardian writes, Senator Elizabeth Warren called it a “monopoly nightmare.” Writers’ and directors’ unions are also calling for the deal to be stopped, arguing that it would worsen working and wage conditions for people in the film industry and negatively impact consumers. Aside from its film division, WBD also plans to separate its news networks. According to CNN employees, the Netflix offer is “the best outcome,” The Guardian reports, because an acquisition by Paramount would mean merging with CBS News, which is led by editor-in-chief Bari Weiss—associated with controversies surrounding her subjectivity and lack of focus on facts. A similar sense of relief was felt at CBS News, where employees feared losing their jobs.

Will Movie Theaters Decline?

Movie theatres are also uncertain about their future, having struggled with fewer premieres and lower revenues since the pandemic. Several groups in the entertainment sector sent an open letter to Congress describing potential impacts on the industry. Among those opposed is the association Cinema United, which told CNBC that approving the deal would threaten large and small theatres not only in the US but also abroad. Operators still have not returned to pre-pandemic levels, and studio consolidation could lead to further reduced production and fewer new films, which would ultimately affect their revenues. Cinema United estimates that annual domestic income could drop by up to 25%.[1] Netflix, however, announced that in the near term it will continue with WBD’s plans, including those related to premieres. It also emphasized its vision that theatrical releases should appear on the platform as soon as possible and highlighted its plan to meet with cinema operators and address their concerns.

Winners and Losers

The mixed reactions to Netflix’s announcement were reflected in the stock market, as its shares fell 2.9% on December 5, 2025, and continued their decline at the start of the next week by more than another 3%. Paramount Skydance was hit the hardest, with its shares dropping by as much as 9.8%. However, its Monday move partially reversed the situation, and the stock rose 9%. Warner Bros. Discovery emerged as the winner, with its shares rising more than 10% from Friday to Monday. As of December 9, 2025, the companies’ stock prices were as follows: Netflix at 96.79 USD, Paramount in the red at 14.25 USD, and WBD continuing its rise to 27.63 USD.*

https://www.investing.com/equities/netflix,-inc.

https://www.investing.com/equities/viacom-cl-b

https://www.investing.com/equities/discovery-holding-co

Stock price development of Netflix, Paramount Skydance, and WBD over the last 5 years (source: Investing.com)*

* Past performance is no guarantee of future results.

[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance. They involve risks and other uncertainties that are difficult to predict. Actual results may differ materially from those expressed or implied in any forward-looking statements.