According to Fortune, on December 7, 2025, Bank of America declared Netflix’s “throne is secured” after it announced a deal to acquire Warner Bros. Discovery’s studios and streaming assets for an enterprise value of roughly $83 billion. The very next day, Paramount Skydance made a hostile, all-cash counteroffer directly to WBD shareholders worth $30 per share, casting doubt on the merger. BofA analysts argued the Netflix deal would put competitors like Paramount and Comcast at a “strategic disadvantage” by killing three rival studios “with one stone.” Netflix expects the acquisition to add $2-3 billion in cost synergies by year three and be accretive to earnings. Executives also plan to keep HBO Max running and preserve theatrical releases, seeing a chance to offer HBO content to 200 million Netflix subscribers who don’t currently have it.
Netflix’s Unbeatable Moat
Here’s the thing: this isn’t just another content buy. This is Netflix fundamentally changing its DNA. For years, the strategy was “build it ourselves.” Now, they’re buying the crown jewels of Hollywood IP outright—Superman, Harry Potter, DC, you name it. Combine that legendary library with Netflix’s already massive global distribution and tech platform, and you’ve got a barrier to entry that’s basically a wall. BofA’s point about this creating “THE media company of the future” isn’t just hype. It’s recognizing that Netflix is no longer just a streaming service; it’s becoming a vertically integrated empire with scale, IP, and multiple revenue streams (streaming, theatrical, licensing) that nobody else can match. The commitment to keep HBO Max alive is a genius, pragmatic move. Why dismantle a working, premium brand when you can use it to upsell your own gigantic user base?
The Desperate Scramble Left Behind
So where does this leave everyone else? In a panic, frankly. Paramount’s last-minute, hostile bid is the act of a company that sees its future collapsing. Without Warner Bros.’ scale, what is Paramount? Or Comcast’s Peacock? They’re now competing against a behemoth that has effectively lapped the field. Comcast’s leadership saying they have “eyes in our own boat” and that they’re “better for having taken a look” sounds like classic corporate spin for “we lost, and it hurts.” The analysts are already floating a “Plan B”: a theoretical NBCU and Paramount Skydance merger. Think about that. The only path to survival for two historic studios is to huddle together for warmth against the Netflix winter. That’s how stark the landscape has become overnight.
What Happens Next?
The immediate drama is whether Paramount’s cash bid can sway WBD shareholders away from the strategic, stock-heavy Netflix offer. Cash is king, but is $30 per share enough when the alternative is becoming part of the undisputed leader? Longer term, the industry’s consolidation phase might be reaching its brutal endgame. Disney remains a strong #2, but the distance between #1 and #3 just became a chasm. For consumers, the fear is always about less competition leading to higher prices. But Netflix might be savvy enough to avoid that trap for a while, using its new revenue synergies to keep subscriptions relatively stable as it absorbs its colossal prize. The real question is: after this deal, does anyone else even have a credible shot at winning the streaming war? I think the answer is probably no.
