- Solve real problems with our hands-on interface
- Progress from basic puts and calls to advanced strategies
Interactive Options Course
Posted December 5, 2025 at 10:30 am
Netflix Inc (NASDAQ:NFLX) is betting regulators — not rival bidders — will decide the fate of its Warner Bros. Discovery (NASDAQ:WBD) deal, even as Paramount Skydance (NYSE:PSKY) argues the sale process was tilted and could complicate the transaction.
Netflix said it entered a definitive agreement to acquire Warner Bros., including its film and television studios and the HBO and HBO Max businesses, in a cash-and-stock deal valued at about $82.7 billion in enterprise value.
Netflix said the transaction values Warner Bros. Discovery at $27.75 per share, implying an equity value of approximately $ 72 billion.
The agreement follows a high-stakes Hollywood bidding fight in which Netflix emerged with exclusive negotiating rights after a turbulent final round of offers that included Paramount Skydance.
Trade reports have differed on the winning price during the auction, with Deadline putting the bid at $28 per share and The Wrap reporting Netflix reached a $30-per-share target.
Although both described the talks as focused on Warner Bros.’ storied film and TV studios and the HBO Max streaming service, along with marquee properties such as Harry Potter and the DC Universe.
Paramount Skydance has alleged that Warner Bros. Discovery’s auction was biased and potentially predetermined in Netflix’s favor.
According to a CNBC report, Paramount Skydance sent a letter to Warner Bros. Discovery CEO David Zaslav, proposing the formation of an independent special committee to oversee the process.
The letter raised concerns about potential management conflicts tied to incentives and warned that even the appearance of favoritism could harm shareholder value and increase risk to any deal.
Netflix said both boards unanimously approved the agreement, which remains subject to regulatory approvals, Warner Bros. Discovery shareholder approval, and other customary closing conditions.
The deal is expected to close after Warner Bros. Discovery completes the planned separation of its Global Networks business into a new publicly traded company, Discovery Global, which is now expected to occur in the third quarter of 2026.
Under the terms, Warner Bros. Discovery shareholders will receive $23.25 in cash and $4.501 in Netflix common stock per share at closing, with the stock portion subject to a collar tied to Netflix’s 15-day VWAP measured three trading days before closing.
Netflix said it expects to maintain Warner Bros.’ current operations, including theatrical film releases, and projects at least $2 billion to $3 billion in annual cost savings by year three, with the deal expected to be accretive to GAAP earnings per share by year two.
Price Action: Netflix shares were down 4.37% at $98.71, and Warner Bros. Discovery shares were up 2.12% at $25.06 during premarket trading on Thursday, according to Benzinga Pro data.
December 5, 2025 8:59 AM3 min read
Originally Posted December 5, 2025 – Netflix Did Strike $82.7 Billion Warner Bros. Discovery Deal But Paramount’s Letter Could Complicate It
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Related Articles
Join The Conversation
For specific platform feedback and suggestions, please submit it directly to our team using these instructions.
If you have an account-specific question or concern, please reach out to Client Services.
We encourage you to look through our FAQs before posting. Your question may already be covered!