Netflix Makes All-Cash Move for Warner Bros. Studios and HBO Max Amid Takeover Battle

Netflix has shifted to an all-cash offer for Warner Bros. Studios and HBO Max, intensifying a takeover battle that could reshape control of some of Hollywood's most valuable entertainment assets.

The revised proposal, reported on 20 January 2026, replaces an earlier cash-and-stock structure and targets Warner Bros. Discovery's film and television studios alongside its HBO Max streaming platform, as the company weighs rival interest from Paramount Global and Skydance Media.

All-Cash Bid Explained

Netflix amended its proposal to an all-cash structure in an effort to increase deal certainty and accelerate shareholder approval. The change removes exposure to market volatility linked to stock valuations and offers Warner Bros. Discovery shareholders a fixed return.

Under the reported terms, Netflix would acquire Warner Bros. Studios and HBO Max, while Warner Bros. Discovery's linear cable networks are expected to remain outside the deal. Executives have previously described the studio and streaming divisions as the company's most valuable long-term assets.

Rival Interest Intensifies

The takeover battle has been complicated by a competing bid from Paramount Global and Skydance Media, which has reportedly placed a higher headline valuation on Warner Bros. Discovery as a whole. That offer, however, targets a broader range of assets, including traditional cable networks.

The Paramount-Skydance proposal values the company at more than $100 billion (about £75 billion), but analysts have noted that its scope may introduce greater regulatory and financing complexity than Netflix's more targeted approach.

Why These Assets Matter

Warner Bros. Studios remains one of the most influential production houses in global entertainment, responsible for major film franchises and award-winning television. HBO Max, despite recent subscriber challenges, continues to be positioned as a premium streaming brand with international reach.

Separating these assets could help Warner Bros. Discovery reduce its debt burden while unlocking shareholder value. For Netflix, acquiring both the studios and HBO Max would significantly expand its owned content library and lessen reliance on third-party licensing agreements.

Consumer Reaction Online

News of the Netflix Warner Bros move prompted immediate reaction across social media, with some users speculating that absorbing HBO Max could lead to higher subscription prices. The comments reflect broader frustration following recent price increases across the streaming industry and concern over how consolidation might affect consumer costs.

Others warned that further consolidation could accelerate the decline of physical media and theatrical distribution, arguing that removing another major studio from traditional release models could weaken cinemas as well as formats such as DVD and Blu-ray.

Regulatory Hurdles Ahead

Any acquisition involving Warner Bros. Studios and HBO Max is expected to face regulatory scrutiny in multiple jurisdictions, including the United States and Europe. Competition authorities are likely to assess whether the deal could limit consumer choice or concentrate excessive market power within streaming.

While Warner Bros. Discovery's board is understood to view Netflix's offer as more straightforward than rival bids, the transaction remains subject to shareholder approval and regulatory clearance.

Takeover Battle Continues

Netflix and Warner Bros. Discovery have not announced a final agreement or closing timeline. Paramount Skydance's competing interest continues to exert pressure as shareholders weigh valuation certainty against broader strategic considerations.

As the takeover battle unfolds, Warner Bros. Studios and HBO Max sit at the centre of a pivotal moment for the entertainment industry, with the outcome likely to influence how content is produced, distributed, and consumed worldwide.