Netflix's $83 Billion Warner Bros Acquisition: What Subscribers Need to Know About the Media Megadeal

Netflix reassured its over 300 million subscribers on Monday that its planned acquisition of Warner Bros will not immediately impact their viewing experience. The nearly $83 billion deal would bring Warner Bros' extensive content portfolio, including its film and TV studios, HBO, and HBO Max, under Netflix's control.

"Nothing is changing today," Netflix emphasized in an email sent late at night 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."

This announcement comes amid intense competition for the acquisition. Paramount Skydance, with backing from the billionaire Ellison family, has launched a competing hostile takeover bid at $30 per share, valuing Warner Bros Discovery at $108.4 billion including debt. Paramount claims its offer represents a "superior alternative" to Netflix's bid, promising shareholders more immediate cash and a higher probability of regulatory approval.

Paramount, known for owning major brands like CBS News, Nickelodeon, and the Mission: Impossible franchise, argues that merging with Warner Bros would create a company with sufficient scale to compete against industry giants like Netflix and Disney.

If Paramount's bid succeeds, the combined entity could potentially secure a larger North American box office share than Disney.

Warner Bros Discovery, currently carrying approximately $35 billion in debt, is facing its fourth major corporate restructuring since 2000.

Netflix's acquisition would provide access to some of entertainment's most valuable intellectual properties, including Harry Potter, Friends, The Big Bang Theory, Casablanca, Game of Thrones, and the DC Universe. These would complement Netflix's existing successful franchises such as 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 assured subscribers in their email.

US President Donald Trump has expressed concerns about the proposed acquisition, noting that it "could be a problem" due to potential competition issues. "I'll be involved in that decision," he stated.

Paramount's bid includes notable partners such as Jared Kushner, Trump's son-in-law, alongside the Ellison family.

As the bidding war intensifies, Warner Bros Discovery shares rose over 4 percent on Monday, Paramount shares increased by 9 percent, while Netflix shares declined more than 3 percent.