The lights dim, everyone goes quiet, the anticipation and excitement begins along with a bucket of buttered popcorn and a Diet Coke. This is the experience most people have when they go to the movies. However, our movie options and availability could be in jeopardy with the possible acquisition of Warner Bros Discovery (WBD). WBD is a prominent company in the movie-making industry. Sure, everyone likes to hang at home and watch Netflix, but the takeover means most movies Warner Bros. brings to theaters would end up on Netflix and limit what is available to be seen on the big screen. Yet there is still an open possibility for Netflix to take their movies to the theaters. Still, for all of the couch potatoes out there, this would be a big win.
Paramount: In these past days and weeks, the battle between Netflix and Paramount to outbid each other for Warner Bros has been ensuing. According to CNBC, as of Jan. 20, Paramount is guaranteeing the backing of Larry Ellison’s 40 billion dollar personal funding to his son, David Ellison, who is trying to acquire WBD. This effort is to help David Ellison and Paramount to overcome Netflix’s superior deal. People are calling these offers hostile because the takeover offer was made without the approval or support of WBD. With Paramount having tried to have a ‘hostile’ takeover and it being all cash, this does give them a chance to overtake Netflix’s better deal. A hostile takeover means the company is trying to buy another without its approval, while an all-cash offer is often more attractive because it gives shareholders immediate, guaranteed payment. Paramount wants to buy all of WBD, including cable networks like CNN and many other assets t hat could possibly hurt their end of the deal. The reason that this would hurt the deal is because they want to take everything, which could make some companies reluctant. Also, if Paramount does come out on top of this deal, they will have a lot more resources and networks, which in turn means more movies being released into theaters. This could possibly help the declining movie industry and give it the boost that it needs. Paramount has also proposed that if it does acquire WBD, it will be releasing 30 movies annually, which shows a strong commitment to making sure viewers have plenty to see in theaters. In 2026 alone Paramount has already released at least 15 movies to theaters. This means that things will stay relatively the same for movie watchers that go to the theater.
Netflix: In the bidding war, Netflix is currently winning and favored by WBD’s board. This does not mean anything because things can change at any time with new deals and stipulations, making the process even more complex with each passing day. According to a recent New York post “Netflix’s entire business model might come under scrutiny if it goes through with this deal,” which is worrying because since June, when the bidding war started, Netflix has lost $160 billion in market capital. Market capital is “a simple investing concept that can help you better understand a company’s market value,” according to the investment firm, Fidelity. In simple terms, if they don’t win the rights to WBD, this deal could do some damage and have a long-lasting effect on the company, and maybe the streaming industry. Their current offer is $82.7 billion, which is greater than Paramount’s at the moment. Yet, this deal could increase Netflix’s debt significantly and could result in challenges that could affect them in the foreseeable future.
How does this affect you: This deal has a lot going on, but most importantly, how does it affect the audience, what you are watching, and where?
If you prefer to watch your movies in the theater, you should be hoping Paramount wins. Their promise to buy more movies and put them out in theaters means more buttered popcorn and jumbo Diet Cokes, and the classic camaraderie and sense of togetherness that the theaters bring. On the other hand, if Netflix wins, they would have a bigger stage and more resources to possibly put movies in theaters.
If you enjoy streaming shows and watching from the comfort of your own home, Netflix winning this deal has its ups and downs. If they do win, shows and movies that are currently streamed on HBO Max might be on Netflix instead, however, decreasing the amount of streaming services that people have to pay for to get all of the entertainment options that they want. But, with these, Netflix might raise prices or introduce new plans or bundles to go along with the new options that they have. With these, there will be less competition in return, there may be fewer options or places to watch different shows on more niche services.
This is more than a financial showdown, this battle that could reshape the streaming landscape for both companies and consumers. This battle has a long way to go and changes very quickly, so make sure to remain updated on the bidding war and how it will affect your watching experience.
