Paramount–Skydance has launched a hostile $108.4 billion bid to wrest the deal from Netflix, after already failing to secure it in an earlier joint effort with Comcast, news agency Reuters reported. Streaming giant Netflix won the deal, securing a $72 billion equity agreement, which will see Warner Bros Discovery’s TV, film studios and streaming assets come under its fold. Paramount’s last-ditch effort comes amid US President Donald Trump’s comments on the mega deal, who raised concerns over Netflix’s “big market share”, which he said could be a problem.

Competition authorities in the US have yet to approve the deal.

What's Netflix's deal with Warner Bros?

Netflix, which is the world’s largest OTT platform (by subscriber count), has “tailored” the deal that powers its streaming services. It is buying only WBD’s content engine, valued at $83 billion EV, including HBO, HBO Max, WB Studios and DC Entertainment, and this gives NFLX a super-premium content bundle instantly.

Interestingly, this transaction spins off Discovery Global (networks and sports assets, cable nets), keeping most of the linear part, rather than a non-aligned part, outside the deal. This transaction is likely to close in the next 12–18 months once it gets US and EU regulatory approvals.

What’s the advantage of the deal for Netflix?

According to brokerage Elara Capital, the deal gives Netflix a ‘global must-have status’ in the entertainment space, due to its premium content library that is already built and enjoys strong recall (Harry Potter, DC, Friends and Game of Thrones), with viewers able to access all of them under one roof.

The brokerage says the deal also leads to potential churn reduction between apps and greater pricing power, which may support better ARPU, resulting in Netflix emerging as a strong vertically integrated behemoth.

Warner Bros’ production engine combined with Netflix’s global distribution could accelerate content generation, and this could result in cost synergies and scale efficiency. Notably, NFLX has set a $2–3 billion annual savings target by the third year, with the expectation of being EPS-accretive by the second year.

'Deal may pose a negative outlook for India's exhibitors'

Elara Capital estimates that Hollywood contributes 15–20% of PVR-INOX’s global box office collection, and within this, Warner Bros accounts for 20%, sharing 4% of global box office collection. “Although small in volume, English films deliver higher F&B and advertising yield, making them strategically important for exhibitors,” says the brokerage.

For example, the Superman-2025 film collected $395 million globally, but only $10 million in India (2% of global). “Because India represents such a minor revenue pool for Hollywood studios, Netflix may gain room to experiment with WBD’s large-franchise titles by shortening theatrical windows or even testing direct-to-OTT launches in India to drive subscriber growth.”

It says any such shift materially impacts exhibitors, especially in a post-COVID era where dependency on big-budget franchise films has increased. “Therefore, in the worst case, 4% revenue impact on PVR-INOX may drag EBITDA by 6% in FY28E. Overall, the Netflix–WBD deal may pose a negative outlook for India’s exhibitors if release tilts toward OTT-first models.”