Netflix’s Advantage Over Warner Bros. Discovery

One of the biggest recent business deals has come to an end, and while it might seem like Netflix lost out, there could be a silver lining for the streaming giant. Netflix spent the last three months trying to acquire Warner Bros. studio from Warner Bros. Discovery, but they were outbid by Paramount Skydance on Feb. 27. Paramount Skydance is buying the entire Warner Bros. Discovery company for $31 per share in cash, with an enterprise value of $110 billion.

For Netflix shareholders, missing out on this deal could actually be a good thing. Initially, investors weren’t too thrilled about the idea. When Netflix announced their plan to buy Warner Bros. studio for $27.75 per share back in December, there were concerns about the price tag and debt involved in acquiring another media company’s intellectual property. As doubts grew and Paramount made a stronger bid, Netflix’s stock rallied, increasing by 30% since Feb. 23. Investors seem relieved that Netflix won’t be taking on Warner Bros.

The new owner, Paramount Skydance, is taking on $54 billion of debt for the deal, which has led to a credit downgrade from Fitch Ratings to below investment grade. This could mean more financial risks than initially anticipated. Netflix, on the other hand, has seen a 5.2% increase in its stock year-to-date, outperforming Paramount and Warner Bros. Discovery.

While missing out on the Warner Bros. deal may have spared Netflix from potential pitfalls, the streaming service still faces strong competition, particularly from YouTube and Disney. Netflix represented 8.8% of TV viewing in January 2026, behind YouTube and Disney. The streaming wars aren’t over, and unless Netflix has another hit franchise on the horizon, the stock may not be a strong buy.

In conclusion, while the battle for Warner Bros. was lost, Netflix might have dodged a bullet by avoiding the deal. The streaming landscape continues to evolve, but Netflix is holding its own. Only time will tell what the future holds for the streaming giant.