tech
January 22, 2026
Paramount is betting European regulators won't approve WBD-Netflix. Here's how it could play out
Paramount is counting on European regulatory backlash to push the WBD deal away from Netflix.
TL;DR
- Netflix agreed to pay $27.75 per share for WBD's movie studio and streaming business.
- Paramount is attempting to acquire all of WBD, including its TV networks and sports rights, for $30 per share.
- European regulators may block a Netflix-WBD deal due to strict rules on Big Tech consolidation.
- WBD believes both Netflix and Paramount deals will be approved by regulators.
- WBD owns significant U.S. sports rights, which would not transfer to Netflix in their proposed deal.
- If the Netflix deal proceeds, WBD's cable networks and digital assets would form a separate entity called Discovery Global.
- Paramount extended its tender offer deadline for WBD shareholders.
- WBD shareholders have largely rejected Paramount's offer, favoring the Netflix merger.
- Netflix co-CEO Ted Sarandos met with Donald Trump to discuss the potential WBD deal.
- The U.S. Department of Justice will review the deal for antitrust concerns.
- Netflix generates substantial revenue from the EMEA region, highlighting the importance of European approval.
- WBD is confident in securing EU approval for the Netflix deal, though conditions may apply.
- Paramount believes a Netflix deal has a low chance of European regulatory approval.
- Previous European regulatory actions, such as blocking Adobe's acquisition of Figma, suggest a precedent for blocking U.S. company deals.
- Paramount executives believe European regulators view Netflix as a Big Tech company that could gain too much market power.
- WBD's board sees a Paramount-Warner merger as a larger regulatory hurdle than the Netflix deal.
- Netflix changed its offer to WBD from mostly cash to all cash to simplify the bid.
- Paramount is considering raising its bid or altering its capital structure.
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