By Juli Scarr
When Netflix announced its Warner Bros. acquisition earlier this month, the headlines focused on scale. An $82.7 billion deal. A century-old studio changing hands. HBO, DC, Harry Potter, and decades of film history potentially landing under one streaming roof.
Today’s update shifts the story in a more practical direction.
Warner Bros. Discovery’s board has formally recommended that stockholders approve the Netflix agreement, while also urging them to reject a competing unsolicited offer from Paramount Skydance. That backing matters. It turns the deal from a headline moment into something actively being pushed toward completion.
Netflix welcomed the decision, framing it as confirmation that its offer is the most certain and stable option on the table. From here, the focus clearly moves away from speculation and toward regulators, shareholders, and how this deal is justified in a crowded entertainment market.
Warner’s Board Makes Its Choice
The board’s recommendation is direct. After reviewing both options with financial and legal advisors, Warner Bros. Discovery says the Netflix deal offers more certainty and long-term value than the Paramount Skydance bid.
That rejection adds important context. This was not a quiet negotiation behind closed doors. Warner evaluated alternatives, weighed risk, and still landed back on Netflix.
The company also reaffirmed its plan to spin off its Global Linear Networks business into a separate public company in 2026, a move already built into the Netflix agreement. That structure gives Warner stockholders additional value beyond the $27.75 per share deal price, which is split between cash and Netflix stock.
For Netflix, this board support helps steady the narrative. Instead of looking like an aggressive consolidation play, the company can now point to Warner’s own leadership saying this is the preferred path forward.
Netflix’s Real Argument Is About TV View Share
The most revealing part of today’s announcement is not the quotes or corporate language. It is the data Netflix is using to defend the deal.
Netflix is clearly preparing for regulatory scrutiny, and its main argument is simple. Even with Warner Bros. and HBO folded in, Netflix says it is still not the biggest force in television viewing.
According to Nielsen data cited by Netflix:
- YouTube leads U.S. TV view share at 12.9 percent
- Disney follows at 11.4 percent
- Netflix currently sits at 8.0 percent
- Combined with HBO and HBO Max, Netflix would rise to about 9.2 percent
That still places the company behind YouTube and Disney, even after the acquisition.
Netflix also notes that a Paramount Skydance deal would have created a combined share closer to 14 percent, which it frames as a more concerning outcome from a competition standpoint.
This is not casual framing. Netflix is positioning itself as one major player in a fragmented attention economy that includes streaming, linear TV, gaming, social platforms, and user-generated video. The message to regulators is clear. This deal does not create dominance. It narrows a gap.
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| Netflix cites Nielsen data to show its TV view share remains behind YouTube and Disney, even after adding Warner Bros. |
Theatrical Films Are Not Going Away
One point Netflix repeated several times in its letter is its commitment to theatrical releases.
Warner Bros. films will continue to release in cinemas with traditional windows. Netflix is explicit about this, likely because theatrical strategy remains a concern when streaming services buy major studios.
This is also where Warner Bros. brings something Netflix does not already have. A full-scale theatrical film division, a major television studio that supplies the wider industry, and the HBO brand focused on prestige television.
Netflix frames this combination as complementary rather than overlapping. Warner fills gaps in Netflix’s current model instead of replacing it.
What This Means Right Now
Nothing changes overnight.
HBO is not suddenly part of Netflix. Warner Bros. does not shift strategy tomorrow. The deal still requires regulatory approval, stockholder votes, and time. Netflix estimates a 12 to 18 month path to close, putting the earliest completion in late 2026.
What does change is momentum.
With Warner’s board publicly backing the deal and Netflix already engaging regulators in the U.S. and Europe, this moves from announcement phase into execution phase. That is a meaningful step.
A Deal Still Worth Watching
For longtime fans of Warner Bros., HBO, and the broader entertainment landscape, this moment still feels strange. A studio that shaped generations of film and television may soon be owned by a company that started by mailing DVDs.
At the same time, today’s update makes one thing clear. This is not a rushed power grab. It is a carefully structured deal being defended on data, competition, and long-term positioning.
Whether regulators agree remains to be seen. But with Warner’s board now firmly on Netflix’s side, this deal feels less hypothetical and more like something the industry genuinely has to prepare for.
And that alone makes it worth watching closely.