Warner Bros. Discovery Rejects Paramount Acquisition Offer
"Now Streaming" is The Fly's weekly recap of the stories surrounding the biggest content streamers.PLAYING THIS WEEKEND:This week's most notable new streaming content was the first episode of season two of post-apocalyptic television series "Fallout." The series, which is based on the Bethesdavideo game franchise of the same name, can be viewed on Amazon Prime Video. Additionally, Netflixsubscribers this weekend can catch season two of cooking competition show "Culinary Class Wars" as well as season five of romantic comedy drama series "Emily in Paris."WARNER BROS./PARAMOUNT:On Wednesday, Warner Bros. Discoveryannounced that its Board of Directors has unanimously determined that the tender offer launched by Paramount Skydanceon December 8, 2025 is not in the best interests of WBD and its shareholders and does not meet the criteria of a "Superior Proposal" under the terms of WBD's merger agreement with Netflix announced on December 5, 2025. The Warner Bros. Discovery Board unanimously reiterates its recommendation in support of the Netflix combination and recommends that WBD shareholders reject PSKY's offer."Following a careful evaluation of Paramount's recently launched tender offer, the Board concluded that the offer's value is inadequate, with significant risks and costs imposed on our shareholders," said Samuel A. Di Piazza, Jr., Chair of the Warner Bros. Discovery Board of Directors. "This offer once again fails to address key concerns that we have consistently communicated to Paramount throughout our extensive engagement and review of their six previous proposals. We are confident that our merger with Netflix represents superior, more certain value for our shareholders and we look forward to delivering on the compelling benefits of our combination."In response, Paramount Skydance affirmed its commitment to acquiring Warner Bros. Discovery. "Paramount's offer provides WBD shareholders superior value compared to the transaction with Netflix, including the certainty of 100% cash and no exposure to equity market fluctuations: Paramount's offer is $30 per share in cash versus Netflix's cash component of only $23.25 per share, an $18 billion difference in the aggregate; The value of Netflix's offer has been further reduced as its share price trades below the bottom of the "collar" on its stock component; Netflix's offer would leave WBD shareholders owning a highly leveraged stub in Global Networks and WBD's Board provides no valuation of that stub; and Netflix's offer has a dollar-for-dollar reduction to what WBD shareholders will receive tied to the net debt on Global Networks. Paramount is highly confident its offer would receive timely regulatory approval because it would enhance competition in the creative industries rather than entrench a dominant streaming monopoly that the Netflix transaction envisions," the company stated.YOUTUBE/OSCARS:In a blog post, Alphabet'sYouTube said that, beginning in 2029, the Oscars will broadcast exclusively on YouTube for free globally and on YouTube TV in the U.S., plus feature red carpet coverage, behind-the-scenes content, and Governors Ball access. Google Arts & Culture will also provide digital access to select Academy Museum exhibitions and help digitize the Academy Collection. ABCstill has rights to the telecast through 2028, Variety's Rebecca Rubin reported earlier.NETFLIX PODCASTS:Netflix continues to expand its video podcast efforts, announcing with iHeartMediathis week an exclusive video podcasting partnership for more than 15 original iHeartPodcasts. The agreement includes all new episodes from the podcast lineup, as well as select library episodes from each show. New video podcast episodes will launch on Netflix in early 2026 in the U.S., with more markets to follow, the companies said.Additionally, Variety's Todd Spanglerthat Netflix reached a multi-year deal with Barstool Sports, under which the streaming giant will have exclusive rights to video versions of a trio of the digital media firm's popular podcasts, namely "Pardon My Take," "The Ryen Russillo Podcast," and "Spittin' Chiclets." The video versions of these shows will be available on Netflix beginning in early 2026, and full video episodes of the podcasts will no longer be available on YouTube as of next year, the author said, noting that Netflix will launch the shows in the U.S. at first, followed by other markets later.NETFLIX SPORTS:Meanwhile, Variety's Spangler alsothis week that Netflix has hired longtime ESPN anchor Elle Duncan as its first on-air sports host in a multiyear deal. Duncan, known for her work on ESPN's "SportsCenter," "College GameDay" and "WNBA Countdown," will also cover other live events for the company, according to the report.DISNEY+/META:Earlier this week, Metaannounced the launch of Disney+ on Meta Quest headsets. "Watch hit movies like Freakier Friday, Original series like Andor, classic films, throwback TV shows, fan favorites like The Simpsons, and so much more," the Facebook parent said. "From watching holiday classics like Home Alone to a Marvel movie marathon, there's always something new to discover. Looking for an elevated cinematic experience? Because Quest is Dolby-enabled, all Disney+ US subscribers can enjoy select titles in Dolby Vision 4K HDR in-headset. For immersive Dolby Atmos sound, simply upgrade to a Disney+ Premium subscription, which also lets you download content on up to 10 devices - making Quest the perfect companion for staycations and vacations alike."STOCK PLAYS:Other publicly traded companies in the space include Apple, FuboTV, Comcast, Fox, and AMC Networks.
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Netflix's Warner Bros. Acquisition Sparks Market Interest
- Poor Market Performance: Despite a significant recovery in 2022, Netflix's stock has underperformed the S&P 500 over the past year, losing 11% last month and trading at a 40% discount to its 52-week high, which may dampen investor confidence.
- Strong Financial Growth: In 2025, Netflix reported revenue of $45 billion, a 16% annual increase, with net income nearing $11 billion, up 26%, demonstrating its strong influence in the streaming industry despite rising costs.
- Acquisition Risks: Netflix's all-cash acquisition of Warner Bros. for $82.7 billion could enhance its market position, but with only around $9 billion in liquidity, it may need to dilute its stock or take on significant debt, leading to a pause in share repurchases.
- Cautious Future Outlook: Although revenue growth is projected to slow to 12%-14% in 2026, Netflix expects subscriber growth and a near doubling of ad revenue, indicating long-term potential in the streaming market, but short-term challenges may persist.
NFL Considers Selling Live Game Rights to Streaming Companies
- Live Rights Negotiation: The NFL is planning discussions with non-traditional media companies about potentially selling live game rights, indicating its sensitivity to changes in the media ecosystem and aiming to broaden its audience base and revenue streams.
- New Strategic Signals: The $100 million deal with YouTube marks a new strategy in NFL's media partnerships, potentially encouraging more non-traditional partners to engage, thereby altering the landscape for traditional media.
- International Game Expansion: The league is set to increase its international slate to a record nine games next season and may sell a separate media package for some of these matchups, further expanding its global reach and attracting international viewers.
- Future Collaboration Opportunities: The NFL recognizes interest from smaller partners and other media players, planning to engage with these potential partners to explore new collaboration models, ensuring competitiveness in an evolving media environment.
U.S. Justice Department Investigates Netflix's Acquisition Deal
- Antitrust Investigation: The U.S. Justice Department is scrutinizing Netflix's proposed acquisition of Warner Bros., focusing on potential anticompetitive practices that could affect the deal's approval and Netflix's market position.
- Transaction Valuation: Netflix agreed to acquire Warner Bros. at $27.75 per share, valuing the deal at approximately $72 billion, and any blockage could significantly impact Netflix's expansion plans.
- Market Share Concerns: The merger would give Netflix and HBO Max control of about 30% of the U.S. subscription streaming market, a threshold that may trigger stricter antitrust scrutiny, affecting future competitive dynamics.
- Legal Response: Netflix's lawyer stated that the company has not received any separate monopolization investigation notice from the Justice Department, although market concerns about the antitrust risks of the deal may affect investor confidence.
Justice Department Reviews Netflix's Acquisition Proposal
- Antitrust Investigation: The Justice Department is reviewing Netflix's acquisition proposal for Warner Bros, probing potential anticompetitive behavior that could impact Netflix's market position and future acquisition capabilities.
- Deal Details: The agreement between Netflix and Warner Bros is valued at approximately $82.7 billion, with Netflix offering $27.75 per share, while Paramount's subsequent hostile bid at $30 per share highlights the intense competition in the market.
- DOJ's Concerns: The DOJ's subpoena questions whether Netflix engaged in any other exclusionary conduct that could entrench market power, and if issues are found, it could block the deal, affecting Netflix's expansion plans.
- Market Sentiment: Retail sentiment around NFLX and WBD stocks remained in the 'bearish' territory over the past 24 hours, while PSKY's sentiment shifted from 'bearish' to 'bullish', indicating varied investor perspectives on different companies.
NFL Plans Talks with Non-Traditional Media for Game Rights
- New Media Opportunities: NFL Media Chief Hans Schroeder announced plans to negotiate with non-traditional media companies to explore selling live game rights, which could generate new revenue streams and expand the league's audience base.
- Rise of Digital Platforms: Schroeder highlighted that the NFL sold a game to YouTube for about $100 million last season, indicating that digital platforms now reach broadcast-level audiences, thus providing the NFL with more options and flexibility.
- International Game Expansion: The NFL plans to increase the number of international games to nine next season, a record high, with Schroeder stating that the league may sell a new package of some of these games to media partners as early as next year, enhancing brand visibility.
- Traditional Media Negotiations: The NFL is expected to begin discussions with traditional media partners, including Disney, Paramount Global, NBCUniversal, and Amazon, later this year regarding new media rights agreements, four years ahead of the current contract's opt-out clause, reflecting the league's focus on future media strategies.
NFL Plans Talks with Non-Traditional Media for Game Rights
- New Media Opportunities: NFL Media chief Hans Schroeder announced plans to engage with non-traditional media companies to explore selling live game rights, indicating a willingness to collaborate with emerging media platforms.
- Digital Platform Potential: The NFL sold a week one game to YouTube for approximately $100 million last season, with Schroeder highlighting that the rise of digital platforms makes them strong competitors to traditional broadcast TV, thereby increasing the NFL's options.
- Media Rights Negotiation Timing: The NFL and its traditional media partners, including Disney, Paramount Global, Comcast's NBCUniversal, and Amazon, are expected to begin discussions on new media rights later this year, four years ahead of the current agreement's opt-out clause, demonstrating the NFL's proactive approach to future media strategies.
- International Game Expansion: The NFL plans to increase the number of international games to a record nine next season, with Schroeder mentioning that the league may sell a new package of some of those games to a media partner as soon as next year, further enhancing its global reach.
Netflix's Warner Bros. Acquisition Sparks Market Interest
- Poor Market Performance: Despite a significant recovery in 2022, Netflix's stock has underperformed the S&P 500 over the past year, losing 11% last month and trading at a 40% discount to its 52-week high, which may dampen investor confidence.
- Strong Financial Growth: In 2025, Netflix reported revenue of $45 billion, a 16% annual increase, with net income nearing $11 billion, up 26%, demonstrating its strong influence in the streaming industry despite rising costs.
- Acquisition Risks: Netflix's all-cash acquisition of Warner Bros. for $82.7 billion could enhance its market position, but with only around $9 billion in liquidity, it may need to dilute its stock or take on significant debt, leading to a pause in share repurchases.
- Cautious Future Outlook: Although revenue growth is projected to slow to 12%-14% in 2026, Netflix expects subscriber growth and a near doubling of ad revenue, indicating long-term potential in the streaming market, but short-term challenges may persist.
NFL Considers Selling Live Game Rights to Streaming Companies
- Live Rights Negotiation: The NFL is planning discussions with non-traditional media companies about potentially selling live game rights, indicating its sensitivity to changes in the media ecosystem and aiming to broaden its audience base and revenue streams.
- New Strategic Signals: The $100 million deal with YouTube marks a new strategy in NFL's media partnerships, potentially encouraging more non-traditional partners to engage, thereby altering the landscape for traditional media.
- International Game Expansion: The league is set to increase its international slate to a record nine games next season and may sell a separate media package for some of these matchups, further expanding its global reach and attracting international viewers.
- Future Collaboration Opportunities: The NFL recognizes interest from smaller partners and other media players, planning to engage with these potential partners to explore new collaboration models, ensuring competitiveness in an evolving media environment.
U.S. Justice Department Investigates Netflix's Acquisition Deal
- Antitrust Investigation: The U.S. Justice Department is scrutinizing Netflix's proposed acquisition of Warner Bros., focusing on potential anticompetitive practices that could affect the deal's approval and Netflix's market position.
- Transaction Valuation: Netflix agreed to acquire Warner Bros. at $27.75 per share, valuing the deal at approximately $72 billion, and any blockage could significantly impact Netflix's expansion plans.
- Market Share Concerns: The merger would give Netflix and HBO Max control of about 30% of the U.S. subscription streaming market, a threshold that may trigger stricter antitrust scrutiny, affecting future competitive dynamics.
- Legal Response: Netflix's lawyer stated that the company has not received any separate monopolization investigation notice from the Justice Department, although market concerns about the antitrust risks of the deal may affect investor confidence.
Justice Department Reviews Netflix's Acquisition Proposal
- Antitrust Investigation: The Justice Department is reviewing Netflix's acquisition proposal for Warner Bros, probing potential anticompetitive behavior that could impact Netflix's market position and future acquisition capabilities.
- Deal Details: The agreement between Netflix and Warner Bros is valued at approximately $82.7 billion, with Netflix offering $27.75 per share, while Paramount's subsequent hostile bid at $30 per share highlights the intense competition in the market.
- DOJ's Concerns: The DOJ's subpoena questions whether Netflix engaged in any other exclusionary conduct that could entrench market power, and if issues are found, it could block the deal, affecting Netflix's expansion plans.
- Market Sentiment: Retail sentiment around NFLX and WBD stocks remained in the 'bearish' territory over the past 24 hours, while PSKY's sentiment shifted from 'bearish' to 'bullish', indicating varied investor perspectives on different companies.
NFL Plans Talks with Non-Traditional Media for Game Rights
- New Media Opportunities: NFL Media Chief Hans Schroeder announced plans to negotiate with non-traditional media companies to explore selling live game rights, which could generate new revenue streams and expand the league's audience base.
- Rise of Digital Platforms: Schroeder highlighted that the NFL sold a game to YouTube for about $100 million last season, indicating that digital platforms now reach broadcast-level audiences, thus providing the NFL with more options and flexibility.
- International Game Expansion: The NFL plans to increase the number of international games to nine next season, a record high, with Schroeder stating that the league may sell a new package of some of these games to media partners as early as next year, enhancing brand visibility.
- Traditional Media Negotiations: The NFL is expected to begin discussions with traditional media partners, including Disney, Paramount Global, NBCUniversal, and Amazon, later this year regarding new media rights agreements, four years ahead of the current contract's opt-out clause, reflecting the league's focus on future media strategies.
NFL Plans Talks with Non-Traditional Media for Game Rights
- New Media Opportunities: NFL Media chief Hans Schroeder announced plans to engage with non-traditional media companies to explore selling live game rights, indicating a willingness to collaborate with emerging media platforms.
- Digital Platform Potential: The NFL sold a week one game to YouTube for approximately $100 million last season, with Schroeder highlighting that the rise of digital platforms makes them strong competitors to traditional broadcast TV, thereby increasing the NFL's options.
- Media Rights Negotiation Timing: The NFL and its traditional media partners, including Disney, Paramount Global, Comcast's NBCUniversal, and Amazon, are expected to begin discussions on new media rights later this year, four years ahead of the current agreement's opt-out clause, demonstrating the NFL's proactive approach to future media strategies.
- International Game Expansion: The NFL plans to increase the number of international games to a record nine next season, with Schroeder mentioning that the league may sell a new package of some of those games to a media partner as soon as next year, further enhancing its global reach.
