$83 billion and penalties for disruption: how Hollywood is bargaining for Warner Bros.
16 February 16:16
Hollywood studios may be close to a major deal after Paramount offered new, tougher terms for a possible takeover of Warner Bros, trying to beat Netflix in the battle for one of the world’s most valuable media assets. This was reported by Bloomberg , according to "Komersant Ukrainian".
What exactly is Paramount offering?
Paramount’s updated offer contains several elements designed to mitigate key risks for Warner Bros. and its shareholders:
- $2.8 billion in compensation to Netflix if Warner Bros. terminates its agreements with the streaming giant and signs a deal with Paramount;
- Support for refinancing WB’s debt, which is a sensitive issue amid high interest rates and rising studio costs;
- Compensation for shareholder losses if the deal is not closed by the end of 2026.
Paramount is thus effectively offering a financial “safety net,” reducing the risks of the deal falling through.
Netflix’s offer: a bid of nearly $83 billion
Netflix, for its part, is offering nearly $83 billion in cash — an extremely rare format for such a large media acquisition. According to Bloomberg, Warner Bros. has tentatively agreed to this offer.
In January 2026, Netflix already raised its bid, making it entirely cash-based, in order to counter Paramount’s intentions to block the merger.
Why Warner Bros. is delaying its decision
Warner Bros. management is currently analyzing whether Paramount is capable of
- offer more economically advantageous terms than Netflix;
- at the same time provoke a further increase in the bid from the streaming giant.
In fact, WB has found itself in the position of an arbitrator, using the competition between the two giants to maximize its own value.
Risks for investors: the market is already nervous
Although both companies say they are willing to raise their offers, investors are increasingly concerned:
- Netflix shares have fallen more than 40% since June 2025;
- the main reason being fears that the “race” for Warner Bros will lead to excessive spending and debt.
Analysts warn that a deal of this magnitude could be a strategic breakthrough, but also a serious financial burden.
Political and industry pressure
The possible acquisition of Warner Bros. is drawing criticism far beyond Hollywood:
- EU cinema associations have warned of risks to European distribution;
- both leading US parties have expressed concern about market concentration, especially in the case of a merger between WB and Netflix.
This means that even after the parties reach an agreement, the deal may face lengthy regulatory reviews.
A longer history of negotiations
- December 2023 — Paramount first negotiates the purchase of Warner Bros.
- December 5, 2025 — Netflix publicly announces its intention to acquire WB;
- January 2026 — Netflix raises its offer and converts it to cash, blocking Paramount’s attempts to intervene.
